Buy Havells India, target price Rs 1320: ICICI Securities

ICICI Securities has buy call on Havells India with a target price of Rs 1320. The current market price of Havells India is Rs 1171.85. Time period given by analyst is one year when Havells India Ltd. price can reach defined target.
Havells India, incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 73615.66 Crore) operating in Consumer Durables sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2644.17 Crore, down -21.67 % from last quarter Total Income of Rs 3375.87 Crore and up 74.47 % from last year same quarter Total Income of Rs 1515.56 Crore. Company reported net profit after tax of Rs 235.78 Crore in latest quarter.


Investment Rationale
The brokerage models Havells to report PAT CAGR of 19.3% over FY21-FY23E and RoE to be upwards of 20% over FY22-23. It remains positive on the company’s business model due to strong moats and growth opportunities. It maintains BUY rating with a DCF-based target price of Rs1,320 (implied P/E 56x FY23E).

Promoter/FII Holdings
Promoters held 59.5 per cent stake in the company as of June 30, 2021, while FIIs held 24.2 per cent, DIIs 8 per cent and public and others 8.4 per cent.