New launches to fuel Havells’ growth, says Barclays

Barclays has maintained its ‘Overweight’ rating on Havells as the launch of new products will 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.

“The overall market demand for fans appears to be flattish, supported by growth in retail demand. Distributors highlighted that Havaells 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 at Rs 614.