Barclays maintains overweight on Havells

MUMBAI: Barclays has maintained its overweight rating on Havells on grounds that launch of new products would help fuel growth as demand for fans remain flat.

The bank said, quoting dealers, that Havells has introduced new product variants in the market such as a new range of tea and coffee electric kettles, a new variant of electric irons, mixer-grinders with different aesthetics, a new range of horizontal geysers for the Mumbai region, priced similarly to vertical geysers, geysers with digital controls, and smaller-size geysers with improved energy efficiency.

"Overall market demand for fans appears to be flattish, supported by growth in retail demand. Distributors highlighted that Havells is collaborating with discoms ( Tata Power and Reliance Infra) to promote the sale of energy-efficient fans," said Barclays analysts led by Venugopal Garre in a note to clients, while maintaining its price target for the stock at Rs 614.

Havells shares fell marginally to end at Rs 555 on Monday.