1116.05 -6.35 (-0.57%)
The 28 reports from 9 analysts offering long term price targets for Havells India Ltd. have an average target of 864.88. The consensus estimate represents a downside of -22.51% from the last price of 1116.05.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-01-22||Havells India Ltd. +||HDFC Securities||1122.65||1150.00||1122.65 (-0.59%)||3.04||Accumulate|
Bandhan Bank: BANDHAN's 3QFY21E PAT disappointed on account of higher-than-anticipated provisions as it sought to insulate the balance sheet from stress emanating from its Assam portfolio. We will continue to closely track progress on this front, and we have reduced our earnings estimates to account for this. Low-cost deposit traction remains impressive in its granularity- this along with BANDHAN's strong RoAE potential underpin our stance. Maintain BUY with a target price of Rs 406. Cyient: We maintain ADD on Cyient, based on improving growth outlook in the services business and strong margin recovery in DLM. The services segment (~82% of revenue) was up 0.3% QoQ CC, led by ENU (+13.9% QoQ) and Communication (+5.2% QoQ), offset by A&D (-5.7% QoQ) and Transportation (-2.5% QoQ). The aerospace vertical (27% of rev) has been under stress due to the pandemic and gradual recovery is expected in FY22E. The focus is on growing services business by winning large deals (won 5 deals with TCV of USD 106mn) and mining Top-30 clients. The growth outlook for Transportation, Medical, and Communication are positive while A&D will stabilise in 4QFY21. Services margin contracted only 90bps QoQ despite wage hike and furlough impact, offset by offshoring benefit and lower sub-con. DLM (+24.9% QoQ) is driving growth and reported a margin of 10.5% (+597bps QoQ), which is sustainable. The FCF generation is strong (FCF/EBITDA at 113%), led by higher collections and net cash stands at Rs 7.7bn (~18% of Mcap). Based on better margin performance, we increase our EPS estimate by +2.7/6.7% for FY22/23E....
|2021-01-21||Havells India Ltd. +||Prabhudas Lilladhar||1122.65||1126.00||1122.65 (-0.59%)||Target met||Hold|
Consumer & residential segments grew by 40% sustained demand momentum in B2C portfolio 2) market share gains across categories 3) likely gains from PLI scheme and Atma-nirbhar drive HAVL's has indicated robust outlook led by 1) improvement in consumer sentiment 2) benefits of increased distribution reach in smaller towns/ rural India and 3) market share gains from unorganized players despite some trade up stocking ahead of price increases. Lloyd remains on track to recovery benefitting from 1) in-house manufacturing in RAC 2) change in industry...
|2021-01-21||Havells India Ltd. +||ICICI Securities Limited||1131.95||1255.00||1131.95 (-1.40%)||12.45||Hold|
ICICI Securities Limited
Better operating leverage help drive EBITDA margin Havells has benefitted from improved plant utilisation of Lloyd (turned into profit from loss on a YoY basis). This along with control over various other operating costs (such as adv. & employee cost down by 220 & 180 bps YoY respectively) help drive EBITDA margin up by 420 bps YoY during Q3FY21. However, delay in passing on price hikes (to offset higher input costs) along with change in product mix resulted in some pressure in gross margins which were lower by 150 bps YoY. According to management, the margin...
|2021-01-21||Havells India Ltd. +||Nirmal Bang Institutional||1122.65||1100.00||1122.65 (-0.59%)||Target met||Accumulate|
Nirmal Bang Institutional
Havells India (HIL) reported its highest ever quarterly revenue at Rs31.7bn, up 40% YoY and 30%/21% above our/consensus estimates. The double digit sales growth came after a gap of seven quarters and on a favourable base (3QFY20 had seen 10% YoY de-growth in sales). The growth was broad-based across categories, led by improvement in consumer sentiments, gains from unorganized sector and 5%-15% price hikes (due to rise in input costs). Consumer & Residential portfolio grew 40% YoY while the Industrial & Infrastructure portfolio grew in midteens. Cables, Switchgears and Lighting segments grew in the range of 27%-32% YoY, ECD grew 46% YoY while Lloyd grew by 70% YoY due to pre-buying in ACs and a low base. Gross margin fell by 150bps YoY to 38.1% and still doesnt fully reflect the impact of rising commodity...
|2021-01-14||Havells India Ltd. +||HDFC Securities||1003.05||1040.00||1003.05 (11.27%)||Target met||Accumulate|
3QFY21 Outliers: Havells, Crompton and V-Guard Pent-up demand driving recovery: Our coverage universe is expected to post 15/27% revenue/EBITDA growth in 3QFY21 (-2/-1% in 3QFY20 and +8/+30% in 2QFY21). Easing of restrictions across the country and the lower number of COVID cases lifted sentiments, leading to a revival in demand. Companies are seeing the benefits of pent-up demand from 1HFY21 and revival in housing activities that are driving B-C products. GT and e-comm have been sustaining robust growth while MT remained slow due to weak footfalls. Continued work from home is driving demand for large home appliances. Recovery in semi-urban and rural markets was quick while the recovery in metros remains gradual. We expect the urban recovery to gain pace over the next few months. Category leaders have been continuing to gain market share, and top 5 players of most categories are further strengthening leadership
|2020-11-04||Havells India Ltd. +||Way2Wealth||824.00||824.00 (35.44%)||Accumulate|
ECD Segment registered strong growth of 18% YoY driven by consumer and residential product categories Revenue grew 10% YoY to `24.5bn in Q2FY21. The performance was driven by consumer and residential product categories (75% of total sales) with 15% YoY growth led by demand recovery. Consumer lighting grew by 15% YoY while domestic wires grew by 19%-20% YoY. Fans industry registered single digit growth, but the company grew faster than competition. The growth was aided by rural demand as well as e-commerce sales. Within the consumer and residential portfolio, rural forms 4% of total sales and has grown by 140% YoY....
|2020-11-02||Havells India Ltd. +||Geojit BNP Paribas||818.65||766.00||818.65 (36.33%)||Target met||Hold|
Geojit BNP Paribas
Despite premium valuation, we upgrade HAVL to Hold from Sell considering sharp turnaround in earnings. Q2 Revenue & PAT grew by 10% & 79% YoY, as demand revived with ease in restriction and strong operating performance. EBITDA margin improved by 130bps YoY to 17.2% on account of better product mix and significant cost rationalisation. We upgrade our EPS estimates by 63% & 11% for FY21E & FY22E, given sharp turnaround in earnings....
|2020-10-30||Havells India Ltd. +||Nirmal Bang Institutional||727.90||655.00||727.90 (53.32%)||41.31||Sell|
Nirmal Bang Institutional
Havells India (HIL) reported 10% YoY growth in revenue at Rs24.5bn, 15% above our/consensus estimates each. While the Consumer and Residential portfolio (75% of total sales) reported 15% YoY growth, the Industrial and Infrastructure portfolio (25% of total sales) declined. The uptrend in secondary sales was led by demand recovery and is likely to sustain. The growth was aided by Lloyd (up 56% YoY on a low base) and ECD segment (up 18% YoY) while growth in Lighting/Switchgears segment was soft at 4%/2% YoY. Cable segment declined by 5% YoY. Gross margin rose by 90bps YoY to 40.2%. EBITDA grew by 79% YoY to Rs4.2bn (due to 11% lower staff costs and 74% lower ad-spend), leading to 670bps YoY rise in EBITDA margin to...
|2020-09-24||Havells India Ltd. +||Motilal Oswal||659.05||635.00||659.05 (69.34%)||-43.10||Neutral|
24 September 2020 its entry into the Refrigerator product category with the launch of 25 new models of Direct Cool, Frost Free, and Side by Side refrigerators. Going ahead, the company aims to launch 25 additional refrigerator models and a new range of dishwashers by Diwali 2020. Assuming INR10k as the price of the base model (190-liter Direct Cool refrigerator) implies a 1213% discount on a like-to-like basis v/s products offered by key brands such as LG, Samsung, and Whirlpool. The new products launched would be available across pan-India Lloyd brand stores, offline dealers, and Lloyd online e-stores. Top 3 players in the Refrigerator category LG, Samsung, and Whirlpool occupy ~80% market share. Videocons exit has resulted in market share gains for the Top 3 players, with Whirlpool being the biggest beneficiary owing to an attractive pricing point).
|2020-07-29||Havells India Ltd. +||ICICI Securities Limited||570.45||630.00||570.45 (95.64%)||Target met||Hold|
ICICI Securities Limited
Significant cost savings help restrict fall in margin Gross margins fell ~270 bps YoY mainly due to change in mix and delay in passing on higher raw material prices. However, sharp fall in advertisement expenditure (0.4% in Q1FY21 vs. 5% in Q1FY20), 44% and 27% YoY decline in employee cost and other expenditure during Q1FY21, restricted fall in EBITDA margin to 8.8%. The management expects a recovery in sales to...
|2020-07-28||Havells India Ltd. +||Geojit BNP Paribas||583.15||530.00||583.15 (91.38%)||52.51||Sell|
|2020-07-28||Havells India Ltd. +||Nirmal Bang Institutional||570.45||525.00||570.45 (95.64%)||52.96||Sell|
Nirmal Bang Institutional
Havells India (HIL) reported 46% YoY decline in revenue at Rs14.8bn, impacted by COVID-19 lockdown, but it was 25%/14% above our/consensus estimates. Recovery was decent in May (60% of YoY sales), while June sales grew 4% YoY, primarily driven by B2C sales (70% of total). June sales growth was led by pent-up demand and market share gains. Sales of Electrical product categories (cables/switchgears/lighting/ECD) declined in 41%-46% range YoY while Lloyd revenue fell 53% YoY. Gross margin fell 280bps YoY to 34.7%. EBITDA fell 53% YoY to Rs1.3bn, leading to 150bps YoY decline in EBITDA margin to 8.8%. But, EBITDA margin was above our/consensus estimates of 5.4%/4.9%. The decline in EBITDA margin was restricted by...
|2020-07-27||Havells India Ltd. +||HDFC Securities||595.20||610.00||595.20 (87.51%)||Target met||Accumulate|
We maintain our ADD rating on HAVELLS, VOLTAS and CROMPTON and REDUCE rating on V-GUARD and SYMPHONY. We initiate coverage on TTK PRESTIGE with an ADD. In the current unprecedented time, when COVID-19 has impacted all consumption categories, consumer durables (CD) have also witnessed immense pressure. In such a phase, where earnings may see high volatility in the near term, we are trying to analyse the underlying strength of categories and companies. Our CD universe has clocked 10x and 18x revenue and EBITDA in the past 17 years. We believe the sector still has multi-year strong growth potential, which would be driven by (1) penetration, (2) product diversification, (3) market share gains, (4) shift from unorganised to organised, (5) high scope in rural and (6) largely untapped global opportunity. The governments consistent Make in India push is further making the sector attractive, opening up various possibilities of manufacturing incentives. The sector is trading at 42x P/E (one-year forward), having seen a sharp re-rating in the past 10 years (20x in 2010). We believe category winners will further gain market share in the current phase and command valuation premiums.
|2020-07-27||Havells India Ltd. +||Motilal Oswal||575.90||560.00||575.90 (93.79%)||-49.82||Neutral|
27 July 2020 While revenue decline of 45% YoY was in line with our expectations, aggressive cost rationalization measures led to a strong beat in earnings. Employee costs were also lower by 27% YoY on account of certain voluntary actions, which should normalize from 2QFY21. As demand recovers, we expect the large part of these cost elements to scale back. However, the outlook remains hazy due to the local lockdowns; hence, the management appears cautious on extrapolating the June run-rate to the coming quarters. The results of peers suggest that with a demand level of 8085% v/s last year in July, Factoring cost savings in 1QFY21, we increase our FY21/FY22 EPS estimates by 14%/4%. The deterioration in working capital was disappointing, but this should normalize in the coming quarters. Maintain Revenue declined 45% to INR14.8b and was in line with our expectation.
|2020-07-27||Havells India Ltd. +||Yes Securities||578.50||493.00||578.50 (92.92%)||55.83||Sell|
|2020-07-27||Havells India Ltd. +||Prabhudas Lilladhar||583.15||524.00||583.15 (91.38%)||53.05||Sell|
HAVL's management remains cautious on the sustainability of the demand trends witnessed in May and June given localized lockdowns adversely impacting business operations. HAVL's consumer portfolio has bounced back faster, however, road to recovery in the B2B portfolio (30% of sales), comprising of industrial cables, switchgears, professional luminaire is likely...
|2020-06-30||Havells India Ltd. +||HDFC Securities||574.40||574.40 (94.30%)||Accumulate|
Current state of business: Business has normalised currently, post washout in April and sub-normal business in May. Demand at consumer level is being witnessed across categories. Management is not witnessing any down-trading in different product categories; hence, don't foresee major risk to realizations. Recovery has been swifter in rural India. Tier 1 and 2 cities are still not doing well in terms of demand as key distribution centres in metros are not fully functional due to local regulations. Havells is at marginal disadvantage due to comparatively lower presence in rural markets. Industrial demand has not picked up yet. However, some green shoots are visible in the form of government orders. Capacity utilisation of plants has reached normalised levels. Company has sorted out labour issues. Havells India - Takeaways from call recently hosted by HDFC Securities Institutional team
|2020-06-29||Havells India Ltd. +||Dolat Capital||581.05||504.00||581.05 (92.07%)||54.84||Sell|
It has expanded its dealer network to 11200 from 10500 last year, while also developing suppliers, sourcing 78% of its needs from local suppliers/MSME. They have bolstered their board strength with senior industry people like BP Rao, ex CMD, BHEL and SS Mundra, ex DY Governor, RBI as replacement to board members completing terms. Interestingly, employee strength fell 12%, from 6,536 to 5,781- the first time in 5 years, after a CAGR of 13% from FY16-19, as part of its delayering and cost rationalization. Further observation is that per employee cost (Emp...
|2020-05-28||Havells India Ltd. +||Geojit BNP Paribas||496.25||528.00||496.25 (124.90%)||Target met||Accumulate|
Geojit BNP Paribas
Havells India Ltd (HAVL) is a leading player in electrical consumer goods in India. Its key verticals include switchgears, cables & wires, lighting fixtures and consumer appliances. We downgrade HAVL to Accumulate from Buy on account earnings downgrade. However, we believe that current headwinds have been priced-in. We expect a gradual revival in demand starting from H2FY21E, as situation normalises....
|2020-05-14||Havells India Ltd. +||ICICI Securities Limited||475.75||575.00||475.75 (134.59%)||Target met||Buy|
ICICI Securities Limited
The cable and lighting segment of the company reported a sharp decline in revenue by 24% and 31%, respectively, in Q4FY20. The company reported strong demand traction in January-February 2020 wherein Lloyd, ECD and switchgear businesses grew 45%, 23% and 15%, respectively. The lockdown situation in March dragged down overall revenue for Q4FY20. According to the management, had the lockdown not happened, the Q4 revenue could have grown 9% YoY (translates to ~| 800 crore of revenue loss in last 15 days of March 2020). We expect a gradual recovery in demand...