Havells India shines bright on strong Q3 results as shares hit 52-week high, Jefferies says buy

By: | Published: January 23, 2018 2:29 PM

Shares of Havells India surged by more than 6% intra-day on Tuesday, after the electrical appliance maker reported strong Q3 results yesterday. Jefferies is bullish on the shares of the company, and has retained a buy call on the shares with a target price of Rs 625.

Global research and brokerage firm Jefferies is bullish on the shares of the Havells India, and has retained a buy call on the shares with a target price of Rs 625. (Image: Reuters)

Shares of Havells India surged by more than 6% intra-day on Tuesday, after the electrical appliance maker reported strong Q3 results yesterday. Havells India on Monday reported a stand-alone net profit of Rs 194.36 crore for the quarter ended in December 2017, compared to a profit of Rs 152.97 crore a year ago, implying a reise of nearly 28%..

Global research and brokerage firm Jefferies is bullish on the shares of Havells India, and has retained a buy call on the shares with a target price of Rs 625. Havells India shares were trading at Rs 581, up by more than 5.6%. The firm’s target price implies an upside of more than 7.5% from the current market prices. Notably, the shares have risen by more than 41% in the last one year. 

Jefferies says that it was a good quarter with a buoyant management commentary. “We are entering into the season with a lot of positive hope. 25-26 percent growth is a very decent growth. We are expecting a decent growth in the coming quarters with new product additions of water heaters, appliances which are doing very well, fans are doing very well,” Anil Rai Gupta, CMD of Havells India told CNBC TV18.

Track live stock price: Havells India

Jefferies observed that the earnings which grew 29% on year, were at least 5% above its earlier estimates. Further, the demand is recovering and the required foundation is in place. Jefferies said that it expects 24% CAGR over FY17-20.

“We expect that rationalisation of GST (goods and service tax) rates for electrical product categories would trigger positive sentiments amongst consumers. We are optimistic on growth going forward,” Havells India chairman and managing director, Anil Rai Gupta said.

Total income during the quarter under review stood at Rs 1,993.53 crore versus Rs1,650.68 crore in the year-ago period. The company said the results are not comparable with previous period as it had acquired consumer durable business of LEEL Electricals Ltd in May last year.

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