Motilal Oswal has given Neutral recommendation for Havells India with a target price of Rs. 1290 in its research report issued on Oct 21, 2021
Motilal Oswal’s research report on Havells India
Havells India (HAVL)’s 2QFY22 earnings were 8% below our expectations despite the topline beat of 5%. Key operating parameters confirm our thesis of margin normalization from highs of FY21 even amid a strong demand environment. We expect the trend to continue over the next 2-3 quarters – leading to strong topline growth, but muted EBITDA/earnings growth.
We maintain our FY22–24E earnings estimate and TP of INR1,290. At CMP, the stock trades at FY23E/FY24E PE of 55x/50x. We maintain a Neutral rating on expensive valuations.