Havells India Share Price Up As It Remains Nuvama's Preferred Pick After Q3 Results

Havells India share price rose on Friday after a Nuvama's report said that the stock remains its preferred pick after its third-quarter results. However, the brokerage has slightly lowered its target price.

According to the brokerage, the stock is poised to benefit from ensuing consumption recovery. "We argue Havells has been gaining market share in most categories over the past several quarters," it said. "Moreover, we reckon it is well-placed to sustain this trend on the back of recovery in consumption demand and real estate along with sustained industrial sector capex."

The company's net profit fell by 3.5% to Rs 278 crore year-on-year in the quarter ended Dec. 31, 2024. This missed the consensus estimates of Rs 339 crore shared by analysts tracked by Bloomberg.

Havells' third-quarter print is a mixed bag as healthy revenue and gross profit growth was offset by higher employee cost and other expenses. "While the ECD segment sustained strong growth (+15% YoY; +16% CAGR), margins got impacted on account of deepening R&D and distribution aspects of the business," it said.

Nuvama estimates revenue, Ebitda and profit compound annual growth rate of 15%,19% and 20% over fiscal 2024–27 with a March 2026 target price of Rs 1,940 apiece from the earlier Rs 2,000 based on 55 times fiscal 2027 earnings per share.

The scrip rose as much as 3.8% during the day to Rs 1,616.25 apiece, the highest level since Jan. 10. It erased gains to trade 0.1% lower at Rs 1,557.15 apiece, as of 9:46 a.m. This compares to a 0.5% advance in the NSE Nifty 50 Index.

It has risen 20.4% in the last 12 months. Total traded volume so far in the day stood at 0.38 times its 30-day average. The relative strength index was at 35.

Out of 41 analysts tracking the company, 23 maintain a 'buy' rating, 12 recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 24.1%.