Havells India Q4 Review - Strong Revenue Growth In ECD, Cables; Lloyd Turns Ebit Positive: Motilal Oswal

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..Motilal Oswal Report.Havells India Ltd. beat our estimates in Q4 FY24, aided by better margins in all business segments, except ECD. Lloyd reported Ebit margin of 2.7% after losses in 10 consecutive quarters. Revenue growth of mere 6% YoY for Lloyd was disappointing, though FY24 revenue growth stood at 12.5% YoY. Ebitda for Havells India came in at Rs 6.3 billion versus estimated Rs 5.7 billion and operating profit margin was 11.7% versus estimated 10.3%. Profit stood at Rs 4.5 billion versus estimated Rs 3.9 billion. .The management highlighted that primary sales have been strong for room ACs, though the north region is yet to witness demand pick-up. The company is neither stocking too much nor facing stock-outs. Lloyd maintains its market share on a full-year basis and would maintain a balance between growth and profitability, though market share gains will always be preferred..We raise our earnings per share estimates for FY25/FY26 by 4%/5% to account for better margins in the cables and switchgear businesses. The stock has been up 25% since our initiation and currently trades at 63 times/51 times FY25E/FY26E EPS, reflecting the growth we anticipate. Given its expensive valuations, we are revising our rating to Neutral from Buy. We value the stock at 55 times FY26E EPS to arrive at our target price of Rs 1,780 with a 7% potential upside..Click on the attachment to read the full report:.Havells India Q4 Results Review - Sustainability Of Lloyd’s Positive Margin, A Challenge: Nirmal Bang.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 Review - Strong Revenue Growth In ECD, Cables; Lloyd Turns Ebit Positive: Motilal Oswal

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