Buy Havells India, target Rs 650: Reliance Securities

Reliance Securities has a buy call on Havells India Ltd. with a target price of Rs 650.0 . The current market price of Havells India Ltd. is Rs 521.6 Time period given by the brokerage is a year when Havells India Ltd. price can reach defined target. Havells India Ltd., incorporated in 1983, is a largecap company with a market cap of Rs 33556.62 crore.

Investment rationale by Reliance Securities

Havells India – founded in 1983 – is one of the largest electrical equipment companies in India. It owns some of the most prestigious Indian brands like Havells, Lloyd, Crabtree, Standard Electric and Promptech, while ~90% of revenue comes from in-house production. We believe incremental scalability post Lloyd acquisition and launch of premium products would help Havells to report improved performance in the long-term, while likely up-tick in discretionary spend over the medium-term. We initiate coverage on Havells with a BUY rating and Target Price of Rs650 (Valuing at 38x FY20 earnings).