Morgan Stanley has retained an Overweight rating on Havells India, with a target price of ₹1,884, suggesting an upside of over 22% from the current market price of ₹1,533.
The brokerage flagged that revenue and earnings for Q1FY26 missed its estimates by 10% and 12%, respectively. The decline was driven by weak performance in Lloyd, ECD (Electrical Consumer Durables), and other segments, while cables & wires (C&W), switchgear, and lighting held steady.
Core revenue growth (excluding C&W and Lloyd) was negative 5%, with overall EBIT margin contracting by 120 basis points to 12.9%.
Despite the Q1 shortfall, Morgan Stanley continues to back the stock for the long term, citing Havells’ strong brand portfolio and a likely rebound in demand in the second half of the year.
Disclaimer: This article is based on brokerage research and is not a recommendation to buy or sell any securities. Investors should consult certified financial advisors before making investment decisions.
