HAVELLS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

🧾 Core Financial Analysis

📈 Revenue & Profitability

PAT Qtr: ₹348 Cr vs ₹517 Cr previous — ↓14.7% QoQ decline, signaling short-term pressure.

EPS: ₹22.5 — decent, but not exceptional given the high valuation.

ROE (18.8%) & ROCE (25.3%) — strong return metrics, indicating efficient capital use.

💰 Cash Flow & Debt

Debt-to-Equity: 0.04 — virtually debt-free, a major strength.

Dividend Yield: 0.66% — modest, but consistent.

📊 Valuation Metrics

Metric Value Insight

P/E Ratio 67.1 Extremely high vs industry PE of 35.6 — overvalued

P/B Ratio ~11.35 Premium valuation, not justified by book value

PEG Ratio 9.11 Suggests growth is not keeping pace with valuation

Intrinsic Value Estimated ~₹1,200–₹1,300 Based on earnings and sector multiples

🏭 Business Model & Competitive Advantage

Sector: Electrical consumer goods — includes switches, fans, lighting, appliances.

Brand Strength: Havells is a household name in India with strong distribution.

Diversification: Broad product portfolio and presence in both B2B and B2C segments.

Competitive Edge: Brand loyalty, wide dealer network, and innovation in premium segments.

📉 Technical & Sentiment Indicators

RSI: 42.2 — nearing oversold zone, but not yet a reversal signal.

MACD: -5.80 — bearish momentum.

Volume: Below average — suggests weak buying interest.

DMA 50 & 200: Current price below both — short-term weakness.

💡 Investment Guidance

📌 Entry Zone (If Undervalued)

₹1,360–₹1,420 — near recent lows and closer to intrinsic value.

Accumulate gradually if price dips below ₹1,400 with improving volume and RSI.

📈 Long-Term Holding View

Hold if already invested, but avoid fresh entry at current levels.

Wait for earnings recovery and valuation correction.

Long-term prospects remain solid due to brand strength and low debt, but valuation needs to normalize.

Would you like a comparison with peers like Crompton or Bajaj Electricals to see how Havells stacks up?

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