Buy Havells India, Target Price Of Rs 1800 — ICICI Securities

The brokerage model Havells to report revenue/PAT CAGRs of 14.4%/19.5% over FY24–27E and RoE moving upwards over FY24-27 and remain positive on Havells led by its established competitive advantages and growth opportunity in white goods and durables. Maintain Buy with a DCF-based target price of Rs 1,800 (implied P/E of 52x FY27E EPS)..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Havells India Ltd.’s Ebitda margin has declined from 12.6% in FY10 to 9.9% in FY24 and we model it to be 9.3% in FY25E. There are structural as well as cyclical/transitory reasons for the margin contractions. While we believe:steep increase in competitive pressures in the ECD segment; andchanges in technology and decline in realisation of lighting have impacted margins structurally, we also note cables and wires have reported steady margin expansion over FY10–24 led by strengthening brand equity and focus on B2C products.We model transitory issues such as impact of plant relocation expenses of switchgear and revenue mix impact in ECD to resolve in FY26. We also model improvement in capacity utilisation of its cables and wires plant likely to drive operating leverage. Focus on market share gains of Lloyd has helped outpace peers in air conditioners; but has also resulted in losses over FY20–24. We model Lloyd to break even on a full-year basis by FY27. However, additional investments (if any) in refrigerators and washing machines to gain market shares may continue to hurt margins. Initiatives in premiumisation as well as stable commodity prices also augur well for margin expansion over FY25–27E. We remain constructive. Maintain Buy..Click on the attachment to read the full report: .Gujarat Fluorochemicals- At The Cusp Of Inflection In Earnings Growth, Says ICICI Securities, Maintaining Buy .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Buy Havells India, Target Price Of Rs 1800 — ICICI Securities

ICICI Securities gives a Buy call for Havells India, says Initiatives in premiumisation as well as stable commodity prices also augur well for margin expansion over FY25–27E.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP