Havells India stocks: Buy Havells India, target price Rs 1550: ICICI Securities

has buy call on with a target price of Rs 1550.0. The current market price of India is Rs 1156.85.

Havells India, incorporated in the year 1983, is a Large Cap company (having a market cap of Rs 74210.08 Crore) operating in Consumer Durables sector.

Havells India key Products/Revenue Segments include Cables, Electrical Consumer Durables, Others, Domestic Switchgears, Light Fittings & Fixture, Export Incentives for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 4167.21 Crore, up 11.92 % from last quarter Total Income of Rs 3723.26 Crore and up 12.23 % from last year same quarter Total Income of Rs 3713.05 Crore. Company has reported net profit after tax of Rs 283.52 Crore in latest quarter.

The company’s top management includes Mr.Anil Rai Gupta, Mr.Ashish Bharat Ram, Mr.Upendra Kumar Sinha, Mr.Subhash S Mundra, Mr.Jalaj Ashwin Dani, Mr.Vivek Mehra, Mr.B Prasada Rao, Mr.T V Mohandas Pai, Mr.Puneet Bhatia, Mr.Surjit Kumar Gupta, Mr.Siddhartha Pandit, Mr.Ameet Kumar Gupta, Mr.Rajesh Kumar Gupta, Ms.Namrata Kaul. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 31-12-2022, the company has a total of 63 Crore shares outstanding.

Investment Rationale
The brokerage remains structurally positive on Havells due to its competitive advantages and growth opportunity in durables. Further, it models Havells to report revenue and PAT CAGR of 17.5% and 17.9% respectively over FY22-FY25E. Nevertheless, it slashes earnings estimates to factor in muted consumer demand and subdued 9MFY23 performance. Promoter/FII Holdings
Promoters held 59.45 per cent stake in the company as of 31-Dec-2022, while FIIs owned 22.6 per cent, DIIs 10.27 per cent.