The 30 reports from 11 analysts offering long term price targets for Havells India Ltd. have an average target of 685.20. The consensus estimate represents a downside of -5.83% from the last price of 727.65.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2019-09-09||Havells India Ltd.||Prabhudas Lilladhar||660.80||414.00||660.80 (10.12%)||43.10||Sell|
|2019-07-30||Havells India Ltd.||Nirmal Bang Institutional||636.35||690.00||636.35 (14.35%)||Target met||Accumulate|
Nirmal Bang Institutional
Havells India (HIL) posted 5% YoY growth in net revenue at Rs27.1bn in 1QFY20, 5% below our estimate, as demand was affected by real estate slowdown, liquidity crunch and delay in projects post election. Growth was driven by Electrical Consumer Durables (ECD), up 24% YoY at Rs6.2bn and Lighting (including EESL), up 9% YoY at Rs2.8bn. Switchgear revenue remained flat YoY at Rs3.8bn, while Cables grew by only 4% YoY at Rs7.8bn. Lloyd sales declined by 8% YoY to Rs6.5bn despite 1QFY20 being a strong summer season. Gross margin was down 20bps YoY at 37.4%. EBITDA margin contracted by 180bps YoY to 10.2% (lowest in past seven quarters), below our/consensus estimate of 12% each. EBITDA fell 12% YoY to Rs2.8bn, while...
|2019-07-30||Havells India Ltd.||ICICI Securities Limited||636.35||720.00||636.35 (14.35%)||Target met||Hold|
ICICI Securities Limited
Havells' muted topline growth at 4% YoY in Q1FY20 was below our estimate mainly due to Lloyd division, which surprised us with revenue de-growth of 8% YoY in the strong season for air conditioners. In addition, the poor demand for switchgear and cable business is largely due to prevailing weakness in the real estate industry and delay in government projects post elections. On the margin front, decline in EBITDA margin by ~200 bps YoY was largely on account of higher employee cost and advertisement expenditure incurred in the Lloyd business. Though the management...
|2019-07-29||Havells India Ltd.||HDFC Securities||665.35||694.00||665.35 (9.36%)||Target met||Neutral|
Havells has gained significant market share in switches (+150bps YoY), lighting (+200bps YoY), fans (+300bps YoY), water heater (+400bps YoY) and other appliances (+250bps YoY) in FY19. Havells' success in ECD (drove re-rating) is expected to sustain despite the scale becoming large. With focus on new launches and market share gains, co has taken a significant leap in FY19 on (1) R&D (New design studio in Noida), (2) Employee strength (expense up 28% YoY) and (3) A&P spend (up +25% YoY). We believe these costs are peaking (% of sales) and hence expect margin expansion. Additionally, benign commodity inflation and price hikes will further support margins. We maintain NEUTRAL (downgraded in Jan-19) and may upgrade at a better price, risk/reward is unfavorable. Havells 1Q was weak led by slowdown impact on core business while Lloyd shocked us on all fronts. Lloyds brand re-positioning initiatives are hurting Havells as the brand lost market share and margins (1% EBITDAM in a harsh summer). We are optimistic on core business to bounce back in 2HFY20 but remain cautious on Lloyds recovery in FY20 (non-seasonal). We cut our EPS by 10% for FY20-21E. We value Havells at 36x on Jun-21 EPS, arriving at a TP of Rs 694. Maintain NEUTRAL.
|2019-07-29||Havells India Ltd.||Chola Wealth Direct||665.35||747.00||665.35 (9.36%)||2.66||Buy|
Chola Wealth Direct
Background: HIL is one of India's largest & fastest growing electrical and power distribution equipment manufacturers with products ranging from industrial & domestic circuit protection switchgear, cables & wires, motors, fans, power capacitors, CFL lamps, luminaries for domestic, commercial & industrial applications, modular switches, water heaters and domestic appliances covering the entire gamut of household electrical needs along with industry lights and cables. Havells owns some of the prestigious...
|2019-07-29||Havells India Ltd.||Geojit BNP Paribas||665.35||642.00||665.35 (9.36%)||Target met||Sell|
|2019-07-29||Havells India Ltd.||Reliance Securities||665.35||690.00||665.35 (9.36%)||Target met||Hold|
|2019-07-29||Havells India Ltd.||Motilal Oswal||665.35||700.00||665.35 (9.36%)||Target met||Neutral|
Another quarter of revenue pressure: Revenues continued disappointing for the second consecutive quarter, with growth of meager 4.5% YoY to INR27.1b (10% miss). EBITDA too declined 11.7% YoY to INR2.8b (24% miss), with the margin contracting 180bp YoY to 10.2%. Other income came in higher than our estimate at INR397m. However, the tax rate stood at 34%...
|2019-05-30||Havells India Ltd.||HDFC Securities||723.25||743.00||723.25 (0.61%)||Target met||Neutral|
In FY19, Havells attained great success in its ECD segment (up 30% despite a base of 21% in FY18) which consistently led to revenue beat. However, EBITDA growth was challenged (14%). In FY20, we expect the co. to continue to scale its new launches, improve Lloyd's performance and benefit from higher B2B spend. We also expect segment margins to revive (FY17-FY18 band) resulting in robust EBITDA growth. We don't expect a re-rating in the stock (high implied valuation for ECD) and believe most near term positives are factored in the stock Havells 4Q performance was weak owing to extended winter and liquidity crunch in the trade. We believe the slowdown is short-lived (led by stable government, hot summer 2019 and recovery in trade liquidity) and Havells will resume its outperformance. We maintain our NEUTRAL stance as we believe most of the near-term positives are priced-in. We value at 36x on Mar-21 EPS, arriving at a TP of Rs 743.
|2019-05-30||Havells India Ltd.||Geojit BNP Paribas||723.25||687.00||723.25 (0.61%)||Target met||Sell|
Geojit BNP Paribas
We lower our earning estimates by 11% & 8% for FY20E & FY21E to factor in near impact on earnings. Despite this, we expect earnings to grow by 23% CAGR over FY19-21E. We roll forward to FY21E and value HAVL at 36x (historical average) given its high brand recall, strong retail presence and strong balance...
|2019-05-30||Havells India Ltd.||ICICI Securities Limited||723.25||800.00||723.25 (0.61%)||Target met||Hold|
ICICI Securities Limited
Havells' Q4FY19 topline growth at ~9% YoY (I-direct estimate: 15%) was largely impacted by liquidity crunch, extended winters and impending general elections. Lloyd business revenue declined ~9% YoY to | 532 crore while lighting and ECD business growth were subdued at 7% and 9%, respectively. Lower demand coupled with intense competition has restricted the company from passing on inflationary pressure, resulting in a slight contraction in gross margin. Also, higher fixed cost dented EBITDA margin (down ~240 bps) higher than our estimate. Though the management guided...
|2019-05-30||Havells India Ltd.||Reliance Securities||723.25||723.25 (0.61%)|
|2019-05-30||Havells India Ltd.||Nirmal Bang Institutional||723.25||725.00||723.25 (0.61%)||Target met||Accumulate|
Nirmal Bang Institutional
Havells India (HIL) posted 9% YoY growth in net revenues at Rs27.5bn in 4QFY19, in-line with our estimate but 6% below consensus. Fragile growth was owing to a suppressed demand in the market led by liquidity crunch, delayed summer season and general election. Top-line growth was driven by cables (up 17% YoY to Rs9bn) and lighting (up 18% YoY to Rs3.8bn). Switchgear grew 11% YoY to Rs4.4bn, while electrical consumer durable (ECD) grew 9% YoY to Rs5bn. Lloyd sales fell 9% YoY to Rs5.3bn. Gross margin was down 90bps YoY and 40bps QoQ to 37.1%, at a multi-year low. EBITDA margin fell 240bps YoY at 11.7%, below our/consensus estimate of 13.7%/13.4%, respectively. EBITDA fell 10% YoY at Rs3.2bn, while PAT declined 8% YoY at Rs2.1bn, 18%/19% below...
|2019-05-29||Havells India Ltd.||Dolat Capital||783.50||830.00||783.50 (-7.13%)||14.07||Buy|
Below estimate Q4; investments to yield results from FY20; maintain Buy The Q4FY19 results were lower than our estimates, as lower volume across segments resulted in lower EBIDTA and PAT. Lloyds's volumes were flat in FY19. The investments of the last couple of years, related to manufacturing, brand, and people, should start yielding results from FY20...
|2019-05-29||Havells India Ltd.||Motilal Oswal||734.30||800.00||734.30 (-0.91%)||Target met||Neutral|
consumption and liquidity crunch impacted business with the situation continuing into April-May. Overhang of the recently concluded elections also impacted revenue. 4QFY19 revenue growth stood at 9%, while EBITDA margin was down 240bp to 11.7%. Adj. PAT declined 12% YoY to INR2.1b. FY19 marked by strong revenue growth, but challenges on margin front: Overall, FY19 was marked by robust revenue growth; overall revenues grew 23.6%, with Havells (ex-Lloyd) at 22% (4QFY19: 14%). The company surpassed INR100b revenue this year. Segment wise cables grew 24%,...
|2019-01-23||Havells India Ltd.||ICICI Securities Limited||693.55||800.00||693.55 (4.92%)||Target met||Buy|
ICICI Securities Limited
ICICI Securities Ltd | Retail Equity Research Havells' core business and Lloyd recorded strong topline growth of 29% and 22% YoY, respectively, leading to total topline growth of 28% YoY in Q3FY19. Strong festive demand in the appliances category coupled with market share gain in the water heater segment drove the overall ECD performances while government led initiatives into infrastructure and electrification drove the performance of cable and switchgear segment. Under Lloyd, while the AC segment...
|2019-01-23||Havells India Ltd.||Nirmal Bang Institutional||693.55||690.00||693.55 (4.92%)||Target met||Accumulate|
Nirmal Bang Institutional
Havells India (HIL) posted a strong 28% YoY growth in net revenues at Rs25.2bn in 3QFY19, 12%/11% above our/consensus estimates, respectively. The growth was aided by government-led initiatives in electrification and infrastructure (cable/switchgear sales up 31%/21% YoY, respectively) and the festive season in 3QFY19 (ECD/Lloyd sales up 34%/22% YoY, respectively). However, volatile commodity prices impacted margins. Gross margin fell 220bps YoY to 37.5% while EBITDA margin was down 160bps YoY at 11.7%, below our/consensus estimate of 12.2%/12.8%, respectively. While EBITDA grew 12% YoY to Rs2.9bn, PAT was flat YoY at Rs1.9bn owing to a higher tax rate (32.2% versus 27.8%). The bottom-line was 5%/2% above our/consensus estimate, respectively, owing to...
|2019-01-23||Havells India Ltd.||Geojit BNP Paribas||693.55||622.00||693.55 (4.92%)||14.52||Sell|
|2019-01-22||Havells India Ltd.||HDFC Securities||713.90||738.00||713.90 (1.93%)||Target met||Neutral|
We value based on 36x P/E on Dec-20EPS with TP of Rs 738 (earlier 713). Havells reported a stellar quarter with 28% revenue growth (est. 13%; 14% in 3QFY18) driven by festive season benefits (durables), govts electrification drive and acceleration in infra projects. EBITDAM was under pressure (2nd consecutive qtr) owing to volatile commodity prices (cost inflation has reversed now). ECD segment witnessed the highest crack in margins (-414bps) owing to focus on new launches and market share gains in festive season. EBITDA/APAT grew by 12/9% (exp. 13/14%).
|2019-01-22||Havells India Ltd.||Emkay||713.90||713.90 (1.93%)||Hold|
Once again, Havells surprised on the positive side, reporting strong revenue growth, driven by the ECD, Cables & Wires, and Lighting & Fixture segments. The Lloyd and Switchgear segments were also not far behind and have reported healthy growth rates. The volatility in commodity prices, currency headwinds, and time lag in passing on the cost increases continue to impact margins negatively. Strong revenue growth was...