Havell's revenue grew 5% YoY missing ours and consensus estimates by 2% and 1% respectively. Higher than anticipated decline in summer products (ECD -1.8%yoy, Lloyd -18.5% YoY) has resulted in revenue missing estimates. B2B infrastructure driven products like switchgears (+8.0 YoY) and Cables and wires (+12.4% YoY) exhibited growth.
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Yes Securities Report
We continue with our Add on Havells India Ltd. with revised target price of Rs 1,698 as we believe high channel inventory is getting liquidated and normalcy is expected to return Q4 onwards.
Moreover, demand is expected to bounce back with improved real estate absorption and positive sentiments for festive demand.
We continue to value Havells at 50 times as company deterioration in contribution margins is temporary and will bounce back on improved demand.
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Also Read: HDFC Bank Q2 Review: Motilal Oswal Maintains 'Buy' Post Steady Quarter —Check Target Price
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