Prabhudas Lilladher has given Accumulate recommendation for Havells India with a target price of Rs. 1400 in its research report issued on Oct 21, 2021
Prabhudas Lilladher’s research report on Havells India
We increase our FY22-FY24 earnings estimate by 2-4% given resilient demand momentum despite an inflationary environment given 1) robust festive season build-up 2) strong housing segment demand 3) healthy traction in industrial and infrastructure portfolio and 4) sustained gains at unorganized sector’s expense. Although, HAVL negatively surprised with GRM compression, however, we believe margins have bottomed out given strong demand outlook, improving mix and calibrated price increase.
We estimate 17.7% earnings CAGR over FY21-24. Maintain Accumulate with DCF based target price of Rs1,400. Recommend buying on dips for long term gains