Objective: ₹ 1,852
CMP: ₹ 1,604.45
Havells India published robust results of the fourth quarter. Consolidated revenues grew by 20.2 percent year -on -year to ₹ 6,540 million rupees, led by strong actions for choles and cables, where income grew by 21 percent year -on -year, with a rest wire and power wiring backed by the expansion of capacity. Lloyd’s growth impulse continued as income increased a solid 39 percent year -on -year, due to healthy primary sales.
ECD saw a moderate growth of 10 percent year -on -year, indicating a slight start of the summer season. Switchgears reported a 6 percent increase of Ale, led by growth in the project business, while the industrial sector remained soft. While the gross margins contracted 65 bp, the operational leverage led to an Ebitda margin of 11.6 percent.
The cost of personnel grew by 13 percent year -on -year and other expenses, 19 percent year -on -year. Pat was 15.7 percent year -on -year higher than ₹ 517 million rupees, led by a greater ebite and a 14 percent decrease in depreciation. A capex of approximately 2,000 million rupees has also planned the leg for two years, mainly in cables and refrigerators. Factoring In strong operational performance of the fourth quarter, we marginally collect our income of the fiscal year26 and income for fiscal year 27E/EBITDA/PAT. We model 15/26 percent of the net income
We maintain our purchase rating, with a reviewed TP or ₹ 1,852 (earlier ₹ 1,949), 50x Fy27 EPS or ₹ 43.5.
Posted on April 24, 2025
