CLSA has reiterated its ‘Outperform’ rating on Havells with a target price of ₹2,120, indicating a potential upside of 35.2% from the current market price of ₹1,568.40.
Havells’ Q3 results showcased revenue growth of 11% year-on-year, in line with expectations, but PAT fell by 2% YoY, impacted by a 110bps decline in EBITDA margins. Strong growth was observed in electrical consumer durables (ECD) and Lloyd, while other segments remained stable.
Management highlighted improving consumer demand, supported by the festive season, alongside strong industrial and infrastructure activity. However, price deflation continued to affect the lighting segment, and cables were impacted by inventory destocking due to weak copper prices. Switchgear margins were affected by product mix changes and plant relocation costs.
CLSA noted that while current numbers fell below expectations, management’s commentary on growth and margin trends will be critical moving forward.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making any investment decisions.
