Jefferies has maintained its hold rating on Havells India with a target price of ₹1,555 per share, citing strong performance in the cables and wires segment that continues to offset weakness in Lloyd and lighting.
The brokerage noted that Havells delivered robust volume growth of over 20%, supported by multiple price hikes, a trend that has continued into the fourth quarter. According to Jefferies, strong demand momentum in cables and wires remains the key earnings driver, aided by infrastructure activity and steady channel restocking, even as certain consumer-facing segments remain under pressure.
However, Jefferies flagged rising copper and aluminium prices as a key monitorable. While the company has successfully passed on cost inflation so far, the brokerage believes further commodity inflation may require calibrated price hikes to protect margins, which could carry some demand elasticity risk in a competitive market.
Jefferies also highlighted valuation as a limiting factor for upside. Havells currently trades at around 50x FY27 price-to-earnings, which is roughly 5% above its 10-year historical average. While earnings delivery remains steady, the brokerage believes much of the near-term optimism is already reflected in the stock price.
As a result, Jefferies sees a balanced risk-reward at current levels and continues to maintain a hold stance.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.