'Buy' Havells India Shares Maintains ICICI Securities On Strong Growth Outlook — Check Target Price

Havells' dealer network has expanded at a 12.7% CAGR over FY16–25. Retailer network has expanded to 260,000 retailers in FY25, from ~100,000 in FY16 expanding at a CAGR of 11.6%.

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ICICI Securities Report

We remain constructive on Havells India Ltd., as its FY25 annual report indicates aggressive investments across key business parameters such as R&D, distribution, branding and capex. Takeaways:

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1. Havells' capex in cables and white goods augurs well.

2. Retailer network has expanded to 260,000 in FY25, from ~100,000 in FY16 – at a CAGR of 11.6%. The electrician network has expanded from 150,000 in FY16 to 301,000 in FY25.

3. Havells has invested Rs 6,244 million towards brand-building activities. Given its investments in BTL activities, we believe Havells has probably a higher share-of-voice than most peers.

4. With operating leverage, cost-saving initiatives and investments in market share gains, Lloyd has turned profitable in FY25, having posted losses over FY22-24.

We remain positive on Havells given its strong competitive advantages such as wide product portfolio, strong distribution network and established brand portfolio.

We maintain Buy with a DCF-based target price of Rs 1,800, implying target P/E of 53x FY27E.

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