HAVELLS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | HAVELLS | Market Cap | 77,817 Cr. | Current Price | 1,241 ₹ | High / Low | 1,624 ₹ |
| Stock P/E | 44.7 | Book Value | 151 ₹ | Dividend Yield | 0.81 % | ROCE | 25.1 % |
| ROE | 19.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,301 ₹ | DMA 200 | 1,410 ₹ |
| Chg in FII Hold | -1.03 % | Chg in DII Hold | 0.97 % | PAT Qtr | 734 Cr. | PAT Prev Qtr | 335 Cr. |
| RSI | 43.2 | MACD | -8.72 | Volume | 16,04,771 | Avg Vol 1Wk | 17,97,466 |
| Low price | 1,142 ₹ | High price | 1,624 ₹ | PEG Ratio | 2.57 | Debt to equity | 0.03 |
| 52w Index | 20.4 % | Qtr Profit Var | 40.6 % | EPS | 27.2 ₹ | Industry PE | 45.1 |
Positive
- Strong ROE (19.5%) and ROCE (25.1%) highlight efficient capital use.
- Very low debt-to-equity ratio (0.03) ensures financial stability.
- EPS of ₹27.2 supports consistent profitability.
- Quarterly PAT growth of 40.6% shows strong earnings momentum.
- Dividend yield of 0.81% provides moderate income.
Limitation
- P/E ratio of 44.7 is close to industry average (45.1), leaving limited valuation comfort.
- PEG ratio of 2.57 indicates moderate overvaluation relative to growth.
- Current price (₹1,241) below 50 DMA (₹1,301) and 200 DMA (₹1,410), reflecting weak technical sentiment.
- RSI at 43.2 and MACD (-8.72) show bearish momentum.
- Decline in FII holdings (-1.03%) signals reduced foreign investor confidence.
Company Negative News
- Weak technical indicators with price trading below key moving averages.
- Reduced foreign institutional participation adds pressure on sentiment.
Company Positive News
- Quarterly PAT surged to ₹734 Cr. from ₹335 Cr., showing strong operational performance.
- DII holdings increased (+0.97%), reflecting domestic institutional support.
- Consistent dividend payouts enhance shareholder trust.
Industry
- Consumer electricals sector remains resilient with steady demand.
- Industry P/E at 45.1 reflects premium valuations across the sector.
- Havells’ competitive advantage lies in brand strength, diversified product portfolio, and strong distribution network.
Conclusion
Havells demonstrates strong fundamentals with high efficiency, low debt, and robust earnings growth. However, valuations are stretched and technical indicators remain weak.
Entry Zone: Attractive accumulation range between ₹1,200–₹1,240 for long-term investors.
Long-Term Guidance: Suitable for investors seeking exposure to consumer electricals with strong fundamentals, but expect moderate returns until technical strength improves.
Would you like me to extend this into a peer benchmarking overlay (comparing Havells with peers like Crompton, V-Guard, and Bajaj Electricals) so you can see relative valuation and efficiency metrics side by side?