Nomura has reiterated its buy rating on Havells India with a target price of ₹1,798 per share, following a strong third-quarter performance led by the wires and cables segment.
The brokerage said Havells delivered a Q3 earnings beat, driven primarily by robust growth in wires and cables, which benefited from sustained demand from infrastructure and construction activity. Nomura believes that ongoing capacity ramp-up in this segment positions the company well to capitalise on medium-term demand opportunities.
Nomura noted that while near-term growth has been supported by infrastructure-led demand, a broad-based recovery in consumer consumption will be critical for driving operating leverage across other segments. This includes appliances and lighting, where margin expansion potential remains contingent on demand normalisation.
Commodity cost pass-through remains a key monitorable, according to the brokerage. While Havells has demonstrated pricing discipline, Nomura believes margin expansion will depend on the company’s ability to balance pricing actions with volume momentum amid fluctuating raw material costs.
Looking ahead, Nomura expects Havells to deliver an 18% revenue CAGR over FY26–28, alongside EBITDA margin expansion to 11.5% by FY28. This is expected to translate into a strong EPS CAGR of 28% over the same period, underpinning its positive stance on the stock.
Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
