Havells India Ltd. share price target

Revenue (excluding Lloyd revenue) grew by modest 9% YoY, PAT declined by 16% YoY on lower EBITDA margins due to GST led de-stocking. EBITDA margin declined by 360bps YoY to 10% due to delay in price hikes, higher advertisement and other expenses. Lloyd consumer business is expected bring sharp scalability to HAVL's consumer business. We have included Lloyd in our earnings estimates. Currently HAVL's has presence across entire consumer electric space. Given its strong earnings outlook, premium valuation is expected to continue....

Havells India Ltd Q1FY18 results comment Revenue increased by 8.79% to Rs. 1860.54 Cr in Q1FY18 when compared to the previous quarter.

We value Havells on 35x P/E on Jun-19EPS, hence our TP is Rs 536 (Rs 520 earlier). The stock has corrected by ~10% after our downgrade in May. With a 15% stock upside, we upgrade our rating to BUY. Havells 1QFY18 net revenue grew by 9% (ex- Lloyd consumer) to Rs 15.9bn vs. expectation of 5%. EBITDA and APAT (Ex-Lloyd) were down by 20% and 22% YoY. Havells registered healthy revenue growth, despite destocking pressure. The Cables & Wire business witnessed strong 19% growth on preponement of demand (14% expectation). Ex-Cable, revenue grew by 2% vs. flat expectation.

ICICI Securities Ltd | Retail Equity Research Despite de-stocking at the dealer's level, Havells managed to record sales growth of 9% YoY (27% YoY growth including Lloyd) in Q1FY18 led by strong revenue growth of 19% in the cable segment. Additionally, lighting segment revenue was up 5% YoY owing to execution of EESL orders. However, primary sales of the switchgear segment remained muted owing to lower demand from dealers. Lloyd's consumer business recorded sales growth of 20% YoY...

Revenue grew by 13.56% to Rs. 1710.2 Cr in Q4FY17 when compared to the previous quarter

HAVL's Q4 net sales grew 17% YoY to Rs 17 bn, its strongest Q4 growth since FY12. This was driven by double digit growth across key segments negated partially by decline in CFL and exports to Sylvania.

Focus on domestic market with acquisition of Lloyd consumer business: Havells came out with a very strong set of Q4FY17numbers growing across all the products and segments amid a very tepid market due to demonetization. The company has completed the acquisition of consumer business of Lloyd air conditioners and now has diversified into large consumer durable business division. Havells has acquired Lloyds entire intellectual property,people and distribution network.

Havells 4QFY17 net revenue registered strong 17% growth YoY to Rs 17.1bn vs. expectation of 14%. EBITDA and APAT were up 3.5% and 4.2% YoY. Havells revenue was ahead of our estimates and market expectations. Revenue recovery was encouraging post demonet.

Havells reported sales growth of 17% YoY in Q4FY17 led by the strong performance of cable, switchgear and electrical consumer durable (ECD) by ~13%, ~16% and 28% YoY, respectively, post demonetisation. The company has taken a price hike to the tune of ~2-4% YoY led by a rise in commodity price. The lighting division revenue declined ~2% YoY due to a decline in conventional lighting systems and 19% YoY dip in export to Sylvania. However, excluding CFL, lighting division recorded growth of 23% YoY...

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 global brands like Crabtree, Reo & Standard Electrical. HIL now operates a network of 90+ branches and representative offices in over 50...