Two prominent brokerages, Goldman Sachs and Investec, have shared their outlook on Havells after its recent earnings release, presenting different perspectives on the stock.
Goldman Sachs: Maintain buy, hike target price to Rs 2,100
Goldman Sachs has maintained its ‘Buy’ rating on Havells while raising the target price to Rs 2,100 from Rs 1,900. The brokerage noted that although margins lagged in the recent quarter, growth is on the rise, and earnings inflection is not far off. The positive surprise from Lloyd, even during a seasonally soft quarter, has driven optimism. However, weak EBIT margins, amid increased competition, remain a concern. Goldman Sachs expects earnings to inflect, which would position Havells to outperform its peers in the near future.
Investec: Maintain hold, cut target price to Rs 1,850
On the other hand, Investec has maintained its ‘Hold’ rating on Havells but has reduced the target price to Rs 1,850 from Rs 1,910. The brokerage highlighted a margin miss in the latest quarter but pointed out that Lloyd’s performance was decent. Investec lowered its margin expectations for FY25-27, leading to a 3-5% cut in EPS estimates for the period.
With a current market price (CMP) of Rs 1,789.15, the stock presents different opportunities based on the brokerages’ outlook. While Goldman Sachs remains bullish with a higher target price, Investec has adopted a more cautious stance, reflecting concerns over weaker margins.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Please seek independent financial advice before making any investment decisions.
