⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HAVELLS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | HAVELLS | Market Cap | 84,509 Cr. | Current Price | 1,348 ₹ | High / Low | 1,674 ₹ |
| Stock P/E | 55.4 | Book Value | 138 ₹ | Dividend Yield | 0.74 % | ROCE | 25.6 % |
| ROE | 19.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,374 ₹ | DMA 200 | 1,456 ₹ |
| Chg in FII Hold | -1.32 % | Chg in DII Hold | 1.18 % | PAT Qtr | 335 Cr. | PAT Prev Qtr | 317 Cr. |
| RSI | 47.0 | MACD | -15.2 | Volume | 11,67,242 | Avg Vol 1Wk | 11,10,149 |
| Low price | 1,250 ₹ | High price | 1,674 ₹ | PEG Ratio | 7.03 | Debt to equity | 0.03 |
| 52w Index | 23.2 % | Qtr Profit Var | 18.4 % | EPS | 23.8 ₹ | Industry PE | 36.0 |
📊 Core Financials
- Quarterly PAT rose from ₹317 Cr. to ₹335 Cr. (~6% sequential growth, ~18.4% YoY growth).
- ROE: 19.0% → strong profitability.
- ROCE: 25.6% → efficient capital utilization.
- Debt-to-equity: 0.03 → virtually debt-free, strong financial health.
- Dividend Yield: 0.74% → modest but consistent shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 55.4 vs Industry PE 36.0 → trading at a premium.
- P/B Ratio: 9.8 (Current Price ₹1,348 / Book Value ₹138) → expensive relative to assets.
- PEG Ratio: 7.03 → valuation stretched compared to earnings growth.
- Intrinsic Value: Current price above fair value, limited upside in near term.
🏢 Business Model & Competitive Advantage
- Havells is a leading electrical equipment and consumer durable company.
- Strong product portfolio: cables, switchgear, lighting, appliances, and fans.
- Competitive advantage: Brand strength, wide distribution network, and diversified product base.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹1,250–₹1,300 (close to 52-week low, RSI at 47 indicates neutral momentum).
- Long-Term Holding: Suitable for investors seeking exposure to India’s consumer durables and electrical growth story, though valuations are currently stretched.
✅ Positive
- Strong profitability with ROE of 19% and ROCE of 25.6%.
- Debt-free balance sheet ensures financial stability.
- Quarterly PAT growth of ~18.4% YoY shows operational strength.
⚠️ Limitation
- High P/E ratio (55.4) compared to industry average.
- PEG ratio indicates valuation is stretched relative to growth.
- FII holdings decreased (-1.32%), showing reduced foreign investor confidence.
📉 Company Negative News
- Stock trading below 200 DMA (₹1,456), indicating long-term bearish trend.
- MACD at -15.2 signals weak technical momentum.
📈 Company Positive News
- Quarterly PAT increased from ₹317 Cr. to ₹335 Cr.
- DII holdings increased (+1.18%), reflecting domestic institutional confidence.
🌐 Industry
- Consumer durables and electrical industry PE at 36.0, lower than Havells’ 55.4, showing sector-wide undervaluation compared to Havells.
- Industry growth driven by urbanization, rising disposable incomes, and demand for premium electrical products.
🔎 Conclusion
- Havells is fundamentally strong with excellent profitability and virtually no debt.
- However, valuations are stretched, limiting near-term upside.
- Best strategy: Accumulate near ₹1,250–₹1,300 and hold long-term to benefit from India’s consumer durables and electrical growth story.