Synopsis:
Havells India Limited received a target price from CLSA, Morgan Stanley, Jefferies, and Motilal Oswal after Q1 results, implying up to a 25% upside potential.
This Large-cap stock, engaged in designing, manufacturing, and marketing electrical equipment, including switches, cables, lighting, fans, and appliances, serving residential and industrial sectors, is in focus after CLSA, Morgan Stanley, Jefferies, and Motilal Oswal gave a target price, which has an upside potential of up to 25 percent.
With a market capitalization of Rs. 98,973.17 crore, the shares of Havells India Limited were currently trading at Rs. 1,578 per equity share, rising nearly 3 percent from its previous day’s close price of Rs. 1,532.05.
Morgan Stanley, a prominent brokerage firm, has recommended an “Overweight” call on Havells India Limited with a target price of Rs. 1,844 per share, indicating an upside potential of 20.36 percent.
According to Morgan Stanley, Havells India’s Q1FY26 revenue and earnings missed estimates by 10 percent and 12 percent, mainly due to weak performance in Lloyd and ECD. While cables, switchgear, and lighting remained stable, core revenue (excluding C&W and Lloyd) fell 5 percent, and EBIT margin dropped 120 basis points to 12.9 percent.
CLSA, a prominent brokerage firm, has maintained an “Outperform” call on Havells India Limited with a target price of Rs. 1,915 per share, indicating an upside potential of 25 percent.
According to CLSA, revenue and EBITDA were below expectations due to lower-than-anticipated summer demand. Although the Lloyd and ECD segments saw a decline, growth in cables & wires and switchgears helped partially offset the overall weakness.
Jefferies, a prominent brokerage firm, has maintained a “Hold” call on Havells India Limited with a cut target price to Rs. 1,635 from Rs. 1,800 per share, indicating an upside potential of 6.72 percent. It described the quarter as challenging on multiple fronts and highlighted that the risk-reward seems stretched. While cables and wires performed well, overall Q1 results were weak.
Motilal Oswal Financial Services (MOSL), a prominent brokerage firm, has maintained an “Neutral” call on Havells India Limited with a cut target price to Rs. 1,680 from Rs. 1,710 per share, indicating an upside potential of 9.66 percent.
According to MOSL, Havells reported a 6 percent year-on-year revenue drop to Rs. 5,460 crore, a 10 percent decline in EBITDA, and around 15 percent fall in PAT to Rs. 350 crore. The weak performance was mainly due to subdued summer demand, particularly affecting cooling product sales.
Overview: Havells India Limited is a leading Indian multinational in the fast-moving electrical goods (FMEG) sector, headquartered in Noida, Uttar Pradesh. The company designs, manufactures, and distributes a broad portfolio of electrical products for residential, commercial, and industrial applications.
Havells has a significant global presence, operating in over 50 countries with a distribution network supported by 23 branches and more than 6,000 workers worldwide. The company operates 11 manufacturing plants across India, including locations such as Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and Bengaluru.
Coming into financial highlights, Havells India Limited’s revenue has decreased from Rs. 5,806 crore in Q1 FY25 to Rs. 5,455 crore in Q1 FY26, which is a drop of 6.05 percent. The net profit has also decreased by 14.71 percent from Rs. 408 crore in Q1 FY25 to Rs. 348 crore in Q1 FY26. Havells India Limited’s revenue and net profit have grown at a CAGR of 18.20 percent and 14.87 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 25.3 percent and 18.8 percent, respectively. Havells India Limited has an earnings per share (EPS) of Rs. 22.5, and its debt-to-equity ratio is 0.04x.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
