Jefferies has maintained its hold rating on Havells India and reduced the target price to ₹1,635 from ₹1,800, citing a challenging first quarter and limited near-term upside. The brokerage noted that the company faced a difficult Q1FY26 on multiple operational fronts, with a combination of weak seasonal demand and margin pressures weighing on performance.
The brokerage identified several reasons for the muted showing, including subdued summer product sales and soft consumer sentiment. However, it highlighted that the cables and wires segment remained a bright spot, providing support to the topline amidst the broader weakness.
Jefferies believes that the risk-reward trade-off appears stretched at current valuations and that further upside will depend on a demand recovery and improvement in earnings trajectory. The outlook remains cautious until visibility on margin normalization and festive season-driven recovery improves.
Stock price: ₹1,533.00 (as of last close)
Disclaimer: The views expressed in this article are those of the brokerage firm. Please consult your financial advisor before making investment decisions.
