HAVELLS - Investment Analysis

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

📊 Investment Analysis: HAVELLS India Ltd.

Investment Rating: 3.6

📉 Valuation & Price Trend Insights

Current P/E of 67.1 is nearly double the industry average of 35.6, suggesting it's overvalued.

PEG Ratio of 9.11 indicates growth is not justifying the valuation, a red flag for long-term accumulation.

RSI of 42.2 is approaching the oversold zone, while MACD is negative, hinting at short-term price weakness.

Price is trading below both 50-DMA and 200-DMA, showing bearish short-term momentum.

💡 Ideal Entry Zone: ₹1,360 – ₹1,420 This aligns with the recent low, giving a better valuation cushion while keeping upside potential intact.

📈 Fundamental Strengths

ROCE: 25.3% and ROE: 18.8% reflect strong and efficient capital deployment.

Debt to Equity of 0.04 reinforces its robust balance sheet.

Consistent profitability despite Q-on-Q PAT decline suggests resilience.

Dividend Yield is modest (0.66%), indicating reinvestment into growth rather than income focus.

🧭 Holding or Exit Strategy (For Existing Investors)

If you're already invested, consider holding if your entry is below ₹1,600 and you’re targeting a 5+ year horizon.

With elevated valuations, don’t expect explosive upside until earnings growth accelerates.

Exit Strategy Options

Partial profit booking near ₹1,900–₹2,000 resistance levels.

Full exit if earnings fail to improve and valuation remains stretched.

Reassess in the next 2–3 quarters based on quarterly earnings momentum and PEG improvement.

Would you like a comparison with peers or a visual breakdown of its performance trends over the last year? I’ve got just the data for it.

Edit in a page