HAVELLS - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.8
| Stock Code | HAVELLS | Market Cap | 88,722 Cr. | Current Price | 1,414 ₹ | High / Low | 1,727 ₹ |
| Stock P/E | 60.1 | Book Value | 138 ₹ | Dividend Yield | 0.71 % | ROCE | 25.6 % |
| ROE | 19.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,452 ₹ | DMA 200 | 1,522 ₹ |
| Chg in FII Hold | -2.31 % | Chg in DII Hold | 2.17 % | PAT Qtr | 317 Cr. | PAT Prev Qtr | 352 Cr. |
| RSI | 40.1 | MACD | -16.0 | Volume | 2,29,960 | Avg Vol 1Wk | 4,10,864 |
| Low price | 1,360 ₹ | High price | 1,727 ₹ | PEG Ratio | 7.64 | Debt to equity | 0.03 |
| 52w Index | 14.8 % | Qtr Profit Var | 16.5 % | EPS | 23.5 ₹ | Industry PE | 28.0 |
📊 Core Financials:
- Quarterly PAT at ₹317 Cr vs ₹352 Cr previously shows slight decline.
- Strong profitability with ROCE at 25.6% and ROE at 19.0%.
- Debt-to-equity ratio at 0.03 → virtually debt-free.
- Cash flows remain stable, supported by consistent earnings.
💹 Valuation Indicators:
- Current P/E: 60.1 vs Industry P/E: 28.0 → significantly overvalued.
- P/B ratio: ~10.2 (₹1414 / ₹138) → expensive.
- PEG ratio: 7.64 → stretched valuation relative to growth.
- Intrinsic value appears lower than CMP, suggesting premium pricing.
🏢 Business Model & Competitive Advantage:
- Havells is a leader in consumer electricals, appliances, and lighting.
- Strong distribution network, brand recall, and diversified product portfolio.
- Market cap of ₹88,722 Cr reflects scale and leadership in the sector.
📈 Entry Zone & Long-Term Guidance:
- CMP ₹1414 is below DMA 50 (₹1452) and DMA 200 (₹1522), indicating weakness.
- RSI at 40.1 and MACD negative → near oversold zone.
- Suggested entry zone: ₹1360–₹1400.
- Long-term holding recommended due to strong fundamentals, but valuation risk persists.
Positive
- Strong ROCE (25.6%) and ROE (19%).
- Low debt-to-equity ratio (0.03).
- Robust brand presence and distribution network.
Limitation
- High P/E (60.1) compared to industry average (28.0).
- PEG ratio of 7.64 indicates overvaluation.
- Quarterly PAT declined from ₹352 Cr to ₹317 Cr.
Company Negative News
- Decline in quarterly profits.
- FII holding reduced by -2.31%.
Company Positive News
- DII holding increased by 2.17%.
- Strong quarterly profit variation growth (16.5%).
Industry
- Consumer electricals industry growing steadily with rising demand for appliances and lighting.
- Industry P/E at 28.0 indicates sector is moderately valued compared to Havells.
Conclusion
⚖️ Havells is financially strong with excellent return ratios and negligible debt. However, valuations are stretched with a high P/E and PEG ratio. Entry is favorable near ₹1360–₹1400 for long-term investors, but caution is advised due to premium pricing. Strong fundamentals support holding for long-term wealth creation.
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