INSUBCONTINENT EXCLUSIVE:
ICICI Securities has an add call on Havells India Ltd
with a target price of Rs 619
The current market price of Havells India Ltd
Time period given by the brokerage is Two Years when Havells India Ltd
price can reach defined target
Havells India Ltd., incorporated in 1983, is a large-cap company with a market cap of Rs 33973.69 crore
Investment rationale by ICICI SecuritiesHavells India (Havells) reported strong topline growth in Q4FY18 on the back of 18% like-for-like
growth (adjusted for excise) in the core business
This came onthe back of strong growth in lighting, ECD and cable segments while the switchgear segment remained muted
The Lloyd segment remained flattish YoY owing to pre-buying in Q3FY18
Core Havells business EBITDA margin improved 120bps YoY expansion in Q4FY18 to 14.6% while Lloyd margin stood at 12.4% in a seasonally
Havells is setting up a new manufacturing facility for air conditioners (AC) in FY19, which is expected to improve Lloyd margins in the
We maintain our ADD rating on Havells with a revised DCF-based FY20 target price of Rs 619 (Rs 621 earlier)
