Motilal Oswal has given Neutral recommendation for Havells India with a target price of Rs. 1030 in its research report issued on Jul 12, 2021
Motilal Oswal’s research report on Havells India
HAVL’s FY21 Annual Report emphasizes on operations in a COVID-19 disrupted year. The management continued to focus on expanding distribution, particularly in rural areas, and launching newer and innovative products. All these measures led to HAVL’s capitalizing on pent up demand arising post the lifting of lockdown restrictions, leading to a recovery in lost sales.
Outlook
We expect margin to settle at 13% by FY24, closer to its margin trend, as ad spends return. Thus, our FY21-24E EPS CAGR stands at 12% (v/s revenue/EBITDA CAGR of 14%/9%). We maintain our Neutral rating, with a TP of INR1,030 (50x FY23E EPS).