Havells is a key stock in focus on the back of the revision in price target by Jefferies. The international brokerage house expects a 14% upside in the stock with a target price of Rs 1,740. This implies an 11% upside from the current levels. The stock is down 17% in the past 6 months and has seen over 5% correction so far in 2025.
Jefferies on Havells: How will Goldi investment impact earnings?
According to Jefferies, another key factor driving the recommendation is the fact that Havells is set to invest Rs 600 crore in a solar module producer – Goldi – for an estimated stake of 8-9%. Jefferies believes that investment won’t have a major impact on Havell’s earnings following which it maintained its ‘Hold’ rating on the stock. According to their calculation, it is trading 56 times its FY26 price to earnings (PE), which is 20% higher than the historical 10-year average PE
The brokerage firm sees a 14% upside in the stock with a target price of Rs 1,740 despite a 9% correction year-to-date. This is because Havells is trading 56 times its FY26 price to earnings (PE), which is 20% higher than the historical 10-year average PE.
Havells’ minority investment is likely to be completed within the next 75 days, which is part of a proposed fundraise by Goldi of up to Rs 3,100 crore. The transaction is valued at 20 times the enterprise value of FY25 EBITDA. However, this appears at a 20% discount to Waaree (24x).
Also, Havells’ exposure to the solar ecosystem is minimal, with less than 5% of sales being inverters, modules, solar cables, and DC switchgear.
According to the management of Havells renewable energy capacity is expected to rise at a compounded annual growth rate of 16% till 2030 to 500 GW, which will be 64% of total energy capacity. This means that out of 500 GW, 300 GW is estimated to be sourced from solar energy sources. Plus, India’s solar energy sector is supported by various government initiatives.
Havells Q3 results
The company reported a 3% year-on-year fall in net profit at Rs 278 crore for the third quarter of FY25. In the same quarter of the last fiscal, it posted a net profit of Rs 287 crore. Also, the company’s revenue from operations increased 10.8% YoY to Rs 4,889 crore as against Rs 4,414 crore in the corresponding period of the previous fiscal.
Havells stock performance
The share price of Havells has risen more than 8% in the last five trading sessions. The stock has given a return of 4.5% in the past one month. However, the stock has corrected 18% in the last six months. Havells’ share price has increased more than 7% in the previous one year.