Buy Havells India, target price Rs 1550: ICICI Securities
Havells India, incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 72524.57 Crore) operating in Consumer Durables sector.
By ETMarkets.com | Updated:
BCCL
ICICI Securities has buy call on Havells India with a target price of Rs 1550. The current market price of Havells India is Rs 1158.15. Havells India, incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 72524.57 Crore) operating in Consumer Durables sector.
Havells India key Products/Revenue Segments include Cables, Electrical Consumer Durables, Others, Domestic Switchgears, Light Fittings & Fixture, Export Incentives for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3723.26 Crore, down -13.25 % from last quarter Total Income of Rs 4292.05 Crore and up 13.81 % from last year same quarter Total Income of Rs 3271.33 Crore. Company has reported net profit after tax of Rs 187.01 Crore in latest quarter.
The company’s top management includes Mr.Anil Rai Gupta, Mr.Ashish Bharat Ram, Mr.Upendra Kumar Sinha, Mr.Subhash S Mundra, Mr.Jalaj Ashwin Dani, Mr.Vivek Mehra, Mr.B Prasada Rao, Mr.T V Mohandas Pai, Mr.Puneet Bhatia, Mr.Surjit Kumar Gupta, Mr.Siddhartha Pandit, Mr.Ameet Kumar Gupta, Mr.Rajesh Kumar Gupta, Ms.Namrata Kaul. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 30-09-2022, the company has a total of 63 Crore shares outstanding.
Investment Rationale
The brokerage believes the company is focusing more on its value-for-money brand REO to cater to the rural markets. ICICI Securities is of the view that the benefits of these investments will pave the way for strong growth in next decade and will be DCF-accretive.
Promoter/FII Holdings
Promoters held 59.45 per cent stake in the company as of 30-Sep-2022, while FIIs owned 23.1 per cent, DIIs 9.56 per cent.
Havells India key Products/Revenue Segments include Cables, Electrical Consumer Durables, Others, Domestic Switchgears, Light Fittings & Fixture, Export Incentives for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3723.26 Crore, down -13.25 % from last quarter Total Income of Rs 4292.05 Crore and up 13.81 % from last year same quarter Total Income of Rs 3271.33 Crore. Company has reported net profit after tax of Rs 187.01 Crore in latest quarter.
The company’s top management includes Mr.Anil Rai Gupta, Mr.Ashish Bharat Ram, Mr.Upendra Kumar Sinha, Mr.Subhash S Mundra, Mr.Jalaj Ashwin Dani, Mr.Vivek Mehra, Mr.B Prasada Rao, Mr.T V Mohandas Pai, Mr.Puneet Bhatia, Mr.Surjit Kumar Gupta, Mr.Siddhartha Pandit, Mr.Ameet Kumar Gupta, Mr.Rajesh Kumar Gupta, Ms.Namrata Kaul. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 30-09-2022, the company has a total of 63 Crore shares outstanding.
Investment Rationale
The brokerage believes the company is focusing more on its value-for-money brand REO to cater to the rural markets. ICICI Securities is of the view that the benefits of these investments will pave the way for strong growth in next decade and will be DCF-accretive.
ADVERTISEMENT
The brokerage remains structurally positive on Havells due to its competitive advantages and the overall growth opportunity in consumer durables. It models Havells to report revenue and PAT CAGRs of 20.6% and 21.4% respectively over FY22-FY24E. The brokerage maintains a buy on the counter with a DCF-based target price of Rs1,550 (implied 55x FY24E EPS).Promoter/FII Holdings
Promoters held 59.45 per cent stake in the company as of 30-Sep-2022, while FIIs owned 23.1 per cent, DIIs 9.56 per cent.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
