Accumulate Havells India; target of Rs 1212: Prabhudas Lilladher

Moneycontrol • 9 days ago

Original source

Key Investment Pillars

  • Havells India plans further 5-7% price hikes in Q3FY27, following 10-25% hikes over the last 12 months, to mitigate raw material inflation.
  • The company reported double-digit volume growth in the W&C segment, driven by healthy growth in underground cables.
  • Management aims to achieve profitability in the medium term for Lloyd, with a focus on growth in non-RAC categories.
  • Switchgear demand remained healthy, with the business largely skewed towards residential switchgear.

Thesis Validation Checklist

  • Investors should watch for the implementation of further price hikes and their impact on revenue growth.
  • Volume growth in the W&C segment and market share gains in wires will be key indicators of the company's performance.
  • The ability of the company to manage raw material inflation and maintain margin discipline will be crucial.
  • Festive-season demand and the company's ability to achieve profitability in the medium term for Lloyd will be important signals to validate the thesis.