Analysts' picks: Havells India
PINC has maintained its ‘buy’ rating on Havells India after the company reported a consolidated net loss of Rs 250 million for the second quarter of the current financial year.
Havells India
cmp: Rs 187.90
target price: Rs 230
PINC has maintained its ���buy��� rating on Havells India after the company reported a consolidated net loss of Rs 250 million for the second quarter of the current financial year. The broking house feels that the company���s consolidated Q2FY09 results were ���below expectations owing to losses in Sylvania.��� According to the report, Sylvania reported a 1% decline in net sales in euro terms, however, a 19% rupee depreciation helped net sales grow by 18% to Rs 8.5 billion. The decline in euro sales was a result of a 6% decline in European markets, it adds. PINC, however, notes that on a standalone basis, net sales rose by 17.5% to Rs 5.8 billion led by cables & wires segment (18% YoY), switchgears (18% YoY) and electrical durables (36% YoY). The broking house has revised its estimates downward to factor in a possible weakness in domestic and global markets. The broking house expects net sales to increase by 11% in FY09 to Rs 55 billion and by 8.4% in FY10 to Rs 60 billion. PINC has set a 12-month price target of Rs 230.
cmp: Rs 187.90
target price: Rs 230
PINC has maintained its ���buy��� rating on Havells India after the company reported a consolidated net loss of Rs 250 million for the second quarter of the current financial year. The broking house feels that the company���s consolidated Q2FY09 results were ���below expectations owing to losses in Sylvania.��� According to the report, Sylvania reported a 1% decline in net sales in euro terms, however, a 19% rupee depreciation helped net sales grow by 18% to Rs 8.5 billion. The decline in euro sales was a result of a 6% decline in European markets, it adds. PINC, however, notes that on a standalone basis, net sales rose by 17.5% to Rs 5.8 billion led by cables & wires segment (18% YoY), switchgears (18% YoY) and electrical durables (36% YoY). The broking house has revised its estimates downward to factor in a possible weakness in domestic and global markets. The broking house expects net sales to increase by 11% in FY09 to Rs 55 billion and by 8.4% in FY10 to Rs 60 billion. PINC has set a 12-month price target of Rs 230.
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