Havells' focusing on India a positive move, but see little value in stock: Sandip Sabharwal

In a chat with ET Now, Sandip Sabharwal, sksandipsabharwal.com, talks about media reports suggesting that Havells will cut a majority stake in Sylvania in a bid to focus on the domestic market.

ET Now: The Economic Times on Wednesday reported that Havells will dilute a majority stake in Sylvania to focus on the domestic market. It certainly seems that the company is trying to get rid of something that has been a pain point. What are your thoughts on this move?

Sandip Sabharwal: Exactly. I think a lot of the acquisitions by midcap Indian companies overseas have not gone in line with what was scripted. I think Sylvania was built up as a big story for Havells. They kept on talking about bullishness about that company for such a long time. But the company never delivered. So let us see the form in which this dilution happens.

Let us see who is going to acquire the stake and what changes in the strategy will it bring. I think it is high time that the company starts focusing on the domestic market because it has built a very strong brand domestically. So this will be a positive move. But having said that, there does not seem to be too much value in the stock at the current price.