Havells India Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Havells reported ~9% YoY growth in sales during Q2FY17 supported by 22% and 9% YoY growth in electrical consumer durable (ECD) and lighting segment, respectively. Lighting division (excluding CFL) recorded growth of 22% YoY while ECD sales growth was largely driven by pre-festive demand. Though the cables division registered ~9% YoY volume growth, aggressive price cuts due to lower commodity price, resulted in muted sales growth. Switchgear sales...

Low base, slight demand recovery drive sales Havells reported its Q1FY17 standalone numbers wherein the topline growth of ~17% YoY was largely on account of the lower base of last year. Lighting products grew ~23% YoY led by a shift from traditional lighting to LED products and fixtures. Switchgear recorded strong sales growth of 20% led by 34% growth in export, cable division recorded slow growth of 5% YoY supported by 20% volume...

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, Concord, Luminance and Linolite & Standard Electrical. HIL now operates a network of 90+ branches and...

Operating performance ahead of estimates. Revenues stood at INR14.7b (up 17% YoY)vs. our estimate of INR14.1b (consensus INR13.9b). Operating profit at INR2.0b (up 23.7% YoY) was ahead of our estimate of INR1.9b (consensus INR1.8b). Adjusted PAT at INR1.45b (up 36.3% YoY) was above our estimate of INR1.4b. Revenue beat was primarily on account of better than expected growth across segments, namely Fans (+18-19% YoY),Lighting( +22.1% YoY) and switchgears (+20% YoY).Improvement in margins was driven by favorable raw material cost, operational efficiency measures, better product mix and pricing...

We visited Havells' switchgear and switches plant at Baddi, Himachal Pradesh. The unit manufactures the entire range of Havells, Crabtree, Standard and REO brands. High degree of automation, stringent quality checks, continuous process improvements and in-house sourcing of design, moulds and components are the key focus areas. Havells' world-class manufacturing plants and focus on design/aesthetics are key contributors to its market share gains and industry-leading margins. We retain BUY, with a target price of INR425 (33x FY18E EPS)....

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, Sylvania, Concord, Luminance and Linolite & Standard Electrical. HIL now operates a network of 90+ branches and representative offices in...

Havells reported its Q4FY16 standalone numbers wherein the topline increased ~9% YoY to | 1475 crore supported by ~23% YoY growth in the lighting segments led by shift from traditional lighting to LED...

With ~6,200 distributors and ~43,000 retailers in its fold, Havells is looking to maximise channel sweating. The company is selectively dealing with retailers in an effort to boost crossselling for specific products. Deeper penetration into the country's hinterland is also...

Key highlights: Strong volume growth in cables coupled with firm pricing in switchgear facilitated gross margin expansion. Sales volumes were strong in both these frontline segments. However, the onset of the festive season saw ad spends being bunched in the...