PL Stock Report: Havells India (HAVL IN) - Management Meet Update - Healthy growth in Cable & Lloyd to continue - Downgrade to 'Accumulate'

Havells India (HAVL IN) - Praveen Sahay - Research Analyst, Prabhudas Lilladher Pvt Ltd

Rating: ACCUMULATE | CMP: Rs1,404 | TP: Rs1,538

Management Meet Update - Healthy growth in Cable & Lloyd to continue

We introduce FY26 estimates and downgrade the stock to ‘Accumulate’ from Buy with revised DCF based TP of Rs1,538, implied PE of 49x at Sep’25E earning (Rs1,460 earlier). We met management of Havells India (HAVL IN) to gauge their festive demand, impact of dry monsoon on seasonal products in some parts of India, competitive scenario and inventory level in channels. HAVL expects healthy double digit growth in Cables, Switchgears and Lloyd businesses in forthcoming years. But immediate growth driver will be its B2B portfolio. The company’s ongoing efforts are directed towards achieving EBITDA margin of 13%-15% (ex-Lloyd), while actively working to reduce losses in the Lloyd segment over the next few quarters, though it will take time to reach desired levels, in our view. We expect Revenue/EBITDA/PAT CAGR of 14.1%/24.4%/27.5% over FY23-26E. Downgrade to ‘Accumulate’.

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