Havells India Q4 Results Review - Sustainability Of Lloyd’s Positive Margin, A Challenge: Nirmal Bang

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..Nirmal Bang Report.While topline was in line with our estimate, Ebitda margin was above our estimate by 158 basis points mainly due to positive margin posted by Lloyd. Lloyd surprised on the upside with positive margins, but at the cost of topline growth. Lower incentives + Sri City plant cost stabilisation drove margins. Benign raw material prices led to no price hikes in fans. However, recent increase in raw material prices indicate price hikes in Fans in Q1 FY25. Cables: As new capacities by peers get commissioned in FY25, we expect pricing pressure to continue. Havells posted 18% YoY volume growth in Q4 FY24 (14.1% YoY value growth) and 15% volume growth in FY24 (14.2% YoY value growth). New Cables capacity is expected to be commissioned in June 2024 and meaningful contribution is expected from H2 FY25. We maintain Accumulate with a revised target price of Rs 1,590 on SOTP basis (implied price-to-earning of 48 times on March’ 26E earnings per share). While we remain structurally positive about the long-term growth prospects, near term risks prevail, mainly in terms of sustainability of Lloyd’s positive margins and stiff competition from regional brands in Switches..Click on the attachment to read the full report:.Havells India Q4 Results: Profit Rises 25%, Beats Estimates.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.

Havells India Q4 Results Review - Sustainability Of Lloyd’s Positive Margin, A Challenge: Nirmal Bang

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