The independent financial analyst theScreener just requalified the general evaluation of HAVELL'S INDIA (IN), active in the Electrical Components & Equipment industry. As regards its fundamental valuation, the title still shows 0 out of 4 stars and its market behaviour is seen as moderately risky. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Slightly Negative. As of the analysis date Jan...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Two Directors at Havells India Ltd sold 12,000 shares at between 1,131.193INR and 1,163.978INR. The significance rating of the trade was 50/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors o...
HAVELLS INDIA: Strong operating performance led by B2B businesses (HAVL IN, Mkt Cap USD9.7b, CMP INR1151, TP INR1120, 3% Downside, Neutral) Margin normalization to offset strong demand, limiting EPS growth Havells India (HAVL)'s 1QFY22 earnings were a strong beat, led by surprisingly robust revenues (+76% YoY; two-year CAGR of -2%) and strong operating leverage. The key takeaway for us is the diversified product portfolio strength and strong brand positioning, which is resilient to comm...
HAVELLS INDIA | ANNUAL REPORT UPDATES: New launches, rural expansion intact in a COVID-disrupted year (HAVL IN, Mkt Cap USD8.8b, CMP INR1042, TP INR1030, 1% Downside, Neutral) HAVL’s FY21 Annual Report emphasizes on operations in a COVID-19 disrupted year. The management continued to focus on expanding distribution, particularly in rural areas, and launching newer and innovative products. All these measures led to HAVL’s capitalizing on pent up demand arising post the lifting of lockdown r...
HAVELLS INDIA | ANNUAL REPORT UPDATES: New launches, rural expansion intact in a COVID-disrupted year (HAVL IN, Mkt Cap USD8.8b, CMP INR1042, TP INR1030, 1% Downside, Neutral) HAVL’s FY21 Annual Report emphasizes on operations in a COVID-19 disrupted year. The management continued to focus on expanding distribution, particularly in rural areas, and launching newer and innovative products. All these measures led to HAVL’s capitalizing on pent up demand arising post the lifting of lockdown r...
Q3FY20 standalone result highlights PAT muted at Rs2bn (+2.4% yoy): The miss in estimates was led by 10% yoy decline in revenues to Rs22.7bn. Margins were flat yoy (+10bp) to 11.8% leading to 9.2% yoy drop in EBITDA to Rs2.7bn. Lower other income (-27% yoy), higher depreciation (+56%) and finance cost (+48%) further impacted earnings, which was partially offset by lower tax rate. Revenue weakness across segments: led to a 9% yoy decline in core-Havells revenues at Rs19.7bn. ECD growth was mu...
(HAVL IN, Mkt Cap USD5.3b, CMP INR600, TP INR660, 10% Upside, Neutral) Weak demand outlook to weigh on revenue growth** Havells' weak operating performance in 3QFY20, led by 10% overall revenue decline, has led to the third consecutive quarter of cut in earnings estimates. ** While the base is favorable, Havells' should regain double-digit growth in FY21, if improvement in the liquidity scenario for overall consumption revival is supportive. Moreover, Lloyd's performance is a key monitorable. ...
ANNUAL REPORT THREADBARE (ART) | HAVELLS FY19: Lloyd dampens the overall performance Havells’ (HAVL) FY19 annual report analysis highlighted weakness at its new acquisition Lloyd which impacted the overall performance. While revenue grew by a strong 23% to INR100.7b, the EBITDA margin shrank 100bp to 11.9% due to higher import cost for consumer durable products (Lloyd). EBITDA increased by a healthy 13.5% to INR11.8b (FY18: INR10.4b), but its conversion to cash flow declined to 63% (FY18: 12...
Q1FY20 standalone result highlights PAT falls 17% yoy to Rs1.74bn: led by sharp drop in Lloyd performance. Revenues +5% yoy to Rs27bn, OPM declined 220bps to 10.2% driving 14% yoy drop in EBITDA to Rs2.76bn. Higher depreciation & tax impacted PAT. ECD (+24% yoy) drives core-Havells revenues: with 9% yoy growth to Rs20.6bn as fans (mid teen growth, summers) & other appliances (geysers, coolers, water purifiers, etc) saw strong growth. However, other segments (switchgears +0.5%yoy; cables +4%;...
HAVELLS INDIA: Lloyd facing stiff competition; Strategy in place but proving time consuming (HAVL IN, Mkt Cap USD6.1b, CMP INR666, TP INR700, 5% Upside, Neutral) Another quarter of revenue pressure: Revenues continued disappointing for the second consecutive quarter, with growth of meager 4.5% YoY to INR27.1b (10% miss). EBITDA too declined 11.7% YoY to INR2.8b (24% miss), with the margin contracting 180bp YoY to 10.2%. Other income came in higher than our estimate at INR397m. However, th...
Q4FY19 standalone result highlights Revenue growth muted at 9% yoy to Rs27.5bn: led by sluggishness in demand on extended winters (impacting fans, ACs), NBFC liquidity issues and elections. ECD +9% yoy: was muted due to weak fan revenues (~70% of segment); switchgears +11% yoy: led by infra & electrification; cables +17% yoy: led by sustained industrial and infra led demand; lighting +18% yoy: on EESL (+216% to Rs504mn) while ex-EESL was muted (9% yoy; weak B2B sales); Lloyd fell 9% yoy to Rs...
Havells India: Margin pressure in near term; Priced to perfection, downgrade to Neutral (HAVL IN, Mkt Cap USD6.5b, CMP INR730, TP INR800, 10% Upside, Downgrade to Neutral) What went wrong this quarter? (a) The Lloyd business was disappointing as revenue declined 9% YoY and margins shrank to 3.4% (4QFY18: 12.4%). (b) ECD business also reported lower revenue growth at 9% (9MFY19: 36%) as the fans segment was impacted by delayed summer. Overall, slowdown in consumption and liquidity crunch i...
Q3FY19 standalone result highlights Revenues +28% yoy to Rs25.2bn: led by growth across segments largely reflecting volume growth. ECD +34% yoy: strong festive season, sustained mkt share gains especially in water heaters, premiumisation; switchgears +21% yoy: demand growth led by govt. initiatives in electrification & infra, apart from low base; cables +31% yoy: led by industrial demand and infra (~25% volume growth); lighting +29% yoy: led by strong festive season (ex-EESL growth 18% yoy) a...
Havells India: Core business robust; cost pressures evident at Lloyd (HAVL IN, Mkt Cap USD6.2b, CMP INR711, TP INR820, 15% Upside, Buy) Operating performance meaningfully above expectations: Revenue grew 28% YoY to INR25b (our estimate: INR21.8b). Gross margin shrank 220bp YoY to 37.5%. EBITDA of INR2.95b (+12.3% YoY) was 6.2% ahead of our estimate. Ad spend increased to INR0.9b (3.6% of sales v/s 4% in 3QFY18), while employee costs rose 30% YoY to INR2.1b. Adj. PAT grew 18.3% YoY to INR1...
Q2FY19 standalone result highlights Adj PAT +4% yoy to Rs1.78bn: on robust revenue growth Revenues +23.3% yoy to Rs21.9bn: with ex-Lloyd growth at 28% yoy to Rs19.3bn led by ECD (+42% yoy; low base, continued market share gains in premium fans, traction in new products), switchgears (+28.3% yoy; demand growth in industrial, exports, residential & govt. led by electrification) and cables (+35% yoy; +20% vol growth). Lighting revenues declined 0.4% yoy due to negligible revenues from EESL (ex-...
Havells India: Strong revenue growth offset by margins contraction (HAVL IN, Mkt Cap USD5.0b, CMP INR586, TP INR700, 19% Upside, Buy) Operating performance marginally ahead of expectations: HAVL’s revenue grew 23% YoY to INR22b, ahead of our estimate of INR19.6b. Gross margin shrank 400bp YoY to 38.3%. EBITDA, adjusted for forex gain of INR47m, stood at INR2.6b (+1.7% YoY), marginally ahead of our estimate. Ad spend increased to INR0.7b (3.4% of sales v/s 3% in 2QFY18), while employee co...
Q1FY19 standalone result highlights Adj PAT +37% yoy to Rs1.7bn: on robust revenue growth. Revenues +39.5% yoy to Rs26bn: with ex-Lloyd growth at 18.5% yoy (22% LTL growth) to Rs18.9bn led by ECD (+32.8% yoy; low base, continued market share gains in premium fans), switchgears (+19.2% yoy; traction in EWA, motors, exports, B2B led by orders from Hyundai electric) and cables (+17.9% yoy; +8% vol growth, ~10% value growth). Lighting revenues declined 1% yoy due to negligible revenues from EESL...
Havells India: Operating performance in line with expectations (HAVL IN,Mkt Cap USD5.1b, CMP INR560, TP INR645, 15% Upside, Buy) In-line operating performance: Revenue grew 40% YoY (43% on an LTL basis) to INR26b, ahead of our estimate of INR24.5b. Gross margin expanded 190bp to 37.6%. EBITDA, adjusted for a forex loss of INR85m, stood at INR3.2b (+84% YoY), in line with our estimate. Adspend increased to INR1.16b (4.5% of sales v/s 4% in 1QFY18), while employee costs rose 22% YoY to INR1...
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