Havells India Ltd. share price target

Havells India Ltd is one of the largest electrical equipment companies in...

Revenue of Havells missed our estimates by 7% due to flat performance by switchgear and cables segment. There was growth across the segments except for cables (1.1%) and switchgear (0.9%) segments. The switchgear and cables had a flat performance due to subdued demand in real estate sector.

Revenue increased by 28.95% to Rs. 2534.9 Cr in Q4FY18 when compared to the previous quarter. Havells India Ltd Q4FY18 results Comment

Q4 was a good quarter with a margin beat. Core Havells at 13% despite single digit growth for cables and SG on back of languid real estate. Expected revival of real estate in H2'19 will push these segments as well. FY18 sales/PAT ahead by 3%/4%. We increase our FY19/20 earnings marginally by 1%/3% leading to a 3% increase in target price...

ICICI Securities Ltd | Retail Equity Research Havells recorded topline growth of ~14% (excluding Lloyd) supported by strong performance of ECD and lighting & fixtures segment wherein segment revenue was up 19% and 20% YoY in Q4FY18, respectively. Simultaneously, addition of Lloyds consumer business also added | 584 crore to sales. The Lloyd performance was flat YoY owing to pre-buying activity in Q3FY18 (owing to a change in energy norms). Further, the company has successfully...

We value based on 36x P/E on Mar-20EPS and arrive at a TP of Rs 656. We maintain BUY. Havells core business grew remarkably well with revenue/EBITDA growth of 18/24% YoY. While, Lloyd disappointed with flat revenue growth (11% in FY18) in its seasonal quarter. However, Lloyds EBITDAM of 12.4/8% in 4Q/FY18 vs. ~6% in FY17 was encouraging.

ICICI Securities Ltd | Retail Equity Research Revenues posted growth of 31% YoY to ~| 1965.8 crore (vs. I-direct estimate: ~| 2020 crore) supported by 33% growth in electrical consumer durable (ECD) and 21% YoY growth in lighting & fixture segment. Simultaneously, addition of Lloyds consumer business also added | 293 crore to sales. However, excluding Lloyd revenue, Havells sales recorded growth of 11% YoY on account of the low base of corresponding quarter impacted by demonetisation...

Havells India Ltd Q3FY18 results comment Revenue rose by 10.6% to Rs. 1965.77 Cr in Q3FY18 when compared to the previous quarter.

We maintain BUY. Havells core business grew remarkably well with revenue/EBITDA YoY growth of 14/33% (in-line). Lloyds posted slightly weak EBITDA margins, ~3% vs. our expectations of ~4.5%, however revenue growth was healthy at 16% YoY aided by pre-buying.

Core business revenue grew 11% YoY to INR16.7b (+ 14%YoY, adjusted for excise impact on exempted zones), below our estimate ofINR17.2b, due to a weak performance from Cables & Wires (+3% YoY). Operating profit rose 33% YoY to INR2.5b and EBIDTA margin improved250bp YoY to 15.2%, driven by a) margin improvement across product categories, as demonetization-related schemes were discontinued, b) price hikes taken to compensate for higher raw material cost and c) low ad spend(3.2% v/s 3.5% in 3QFY17). We raise our earnings estimate for FY20 by 3% to factor in better-than-estimated operating margins, driven by cost-control measures. We maintain our Buy rating and raise our TP to INR640, with exit multiple of 37x Mar???20E EPS of INR17.2.