iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Q3FY23 Review: Havells India: Valuations corrected, losses in Lloyd continued

20 Jan 2023 , 03:12 PM

Havells India (HAVL) missed Q3FY23 Ebitda/PAT forecasts by 4-5% as forecast by the analysts of IIFL securities. Margins are low despite better than expected volume offtake, especially in C&W and Lloyd. Price transmission did help QoQ recovery in gross margins, but pending high cost inventories in RAC will keep Lloyd profitability muted in Q4. The operating profitability was soft in core portfolio, while losses in Lloyd continued owing to high cost inventory and investments in non-RAC portfolio. Contrary to expectations, recovery in B2C demand is likely to take longer while inflationary headwinds are back on the anvil.

The analysts has cut FY23 EPS of HAVL by 7% and roll-forward target price to December 2024 EPS. Valuations have corrected in the recent months, but re-rating catalysts will depend on recovery in consumer demand and turnaround in Lloyd. 

The core portfolio of Havells India is on a strong footing for structural recovery in Housing demand, profitable growth in Lloyd is essential for sustained re-rating of the stock. Price hikes of 3-4% in Fans and RAC will have effect with the onset of the season.

Analysts of IIFL Securities maintain Add on Havells India while the stock trades at 40x FY25 EPS with a target price of Rs 1375.

Related Tags

  • Havells India
  • Havells India Q3
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

closeIcon

Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp