HAVELLS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | HAVELLS | Market Cap | 81,261 Cr. | Current Price | 1,294 ₹ | High / Low | 1,674 ₹ |
| Stock P/E | 53.2 | Book Value | 138 ₹ | Dividend Yield | 0.77 % | ROCE | 25.6 % |
| ROE | 19.0 % | Face Value | 1.00 ₹ | DMA 50 | 1,371 ₹ | DMA 200 | 1,454 ₹ |
| Chg in FII Hold | -1.32 % | Chg in DII Hold | 1.18 % | PAT Qtr | 335 Cr. | PAT Prev Qtr | 317 Cr. |
| RSI | 39.1 | MACD | -17.9 | Volume | 5,19,226 | Avg Vol 1Wk | 10,40,221 |
| Low price | 1,250 ₹ | High price | 1,674 ₹ | PEG Ratio | 6.76 | Debt to equity | 0.03 |
| 52w Index | 10.4 % | Qtr Profit Var | 18.4 % | EPS | 23.8 ₹ | Industry PE | 35.8 |
📊 Havells shows strong fundamentals but weak short-term technicals. The RSI at 39.1 indicates the stock is approaching oversold territory, while MACD (-17.9) reflects bearish momentum. The current price (₹1,294) is below both the 50 DMA (₹1,371) and 200 DMA (₹1,454), signaling weakness. However, strong ROCE (25.6%) and ROE (19.0%) support long-term stability. Valuation is stretched with a P/E of 53.2 compared to industry P/E of 35.8, limiting upside potential.
💡 Optimal Entry Price: ₹1,270–₹1,295, near the recent low of ₹1,250.
📈 Exit Strategy (if already holding): Consider exiting around ₹1,370–₹1,400 (near 50 DMA resistance) unless momentum strengthens.
✅ Positive
- Strong ROCE (25.6%) and ROE (19.0%) indicate efficient capital use.
- Low debt-to-equity ratio (0.03) shows financial stability.
- Quarterly PAT growth from ₹317 Cr. to ₹335 Cr. (+18.4%).
- DII holdings increased (+1.18%), reflecting domestic institutional support.
⚠️ Limitation
- High P/E (53.2) compared to industry average (35.8).
- Dividend yield of 0.77% is modest.
- Stock trading below both 50 DMA and 200 DMA reflects bearish sentiment.
- PEG ratio of 6.76 suggests limited growth relative to valuation.
📉 Company Negative News
- FII holdings declined (-1.32%), showing reduced foreign investor confidence.
- Weak technical indicators (MACD, DMA trend) limit short-term upside.
📈 Company Positive News
- Quarterly profit growth (+18.4%) shows earnings strength.
- DII holdings increased (+1.18%), reflecting domestic support.
- Strong market cap (₹81,261 Cr.) ensures resilience.
🏭 Industry
- Consumer electricals sector remains resilient with steady demand.
- Peers trade at lower valuations (Industry P/E 35.8), making Havells relatively expensive.
🔎 Conclusion
Havells is fundamentally strong but technically weak in the short term. It may be suitable for swing trading if entered near ₹1,270–₹1,295, with a target around ₹1,370–₹1,400. Traders should exercise caution due to bearish momentum and monitor RSI recovery before committing heavily.