Shares of Havells India fell over 4% in early trade today, April 23 after multiple brokerages trimmed estimates following a weak March quarter performance and cautious near-term outlook.
The stock was trading at ₹1,292.10, down ₹56.60 or 4.20% from its previous close of ₹1,348.70, reflecting investor concern around subdued demand trends and margin pressures.
Brokerage firm CLSA maintained an ‘Outperform’ rating on the stock with a target price of ₹1,535 but flagged that Havells reported a weak fourth quarter. EBITDA declined 6% year-on-year and came in below estimates, while revenue growth remained muted at just 2% YoY. CLSA noted that segments such as cables & wires and renewables, particularly solar, were the only positive surprises, supported by higher commodity prices and improved demand. However, unseasonal rains, a delayed summer onset and pre-buying impacted cooling product demand, though the brokerage expects a stronger first quarter of FY27 on a low base and a potentially harsher summer.
HSBC also retained a ‘Buy’ rating but cut its target price to ₹1,560, citing an unimpressive quarter. The brokerage highlighted that net revenue growth was limited to 2% YoY, with the Lloyd segment witnessing a sharp 19% decline. While cables & wires and solar segments delivered strong growth and contribution margins, HSBC said it has lowered its estimates, particularly for the electrical consumer durables (ECD) and Lloyd businesses.
Meanwhile, Nomura maintained a ‘Buy’ rating with a target price of ₹1,620, but trimmed its forecasts following the results. The brokerage cut revenue estimates by 4% and reduced EBITDA margin assumptions by 60–10 basis points to 10.7% and 11.4%, respectively, leading to earnings per share (EPS) cuts of 11% and 6%. Nomura noted that while consumption recovery remains a key catalyst, margin improvement is expected to be gradual amid ongoing cost pressures.
Overall, analysts remain constructive on Havells’ medium-term prospects but see near-term challenges due to weak cooling demand, cost inflation, and pressure on key segments, which has led to estimate cuts across brokerages.