Buy Havells India; target of Rs 1285: Anand Rathi

Moneycontrol • 6 days ago

Original source

Key Investment Pillars

  • Havells India delivered strong Q2FY27 performance with 35% y/y revenue growth, driven by broad-based growth across segments.
  • The company's consumer durables business is expected to drive growth, with a focus on premiumization and margin protection through calibrated price hikes.
  • Switchgears and solar segments are also poised for growth, with a strong order book and increasing demand.
  • Management remains positive on festive-season demand, with channel inventories normalizing, and expects margin to improve as price hikes flow through.

Thesis Validation Checklist

  • Investors should watch for signs of margin recovery, driven by price hikes and operating leverage improvements.
  • Growth in the consumer durables segment, particularly in premium products, will be a key indicator of the company's ability to execute its strategy.
  • The company's ability to navigate commodity price volatility and maintain its competitive position will be crucial to its long-term success.
  • Festive-season demand and channel inventory levels will be important indicators of the company's near-term performance.