Today, Havells India Ltd. experienced a 3% decline in share price after a 13% rally over the past few months.
Market analysts suggest that the recent price correction is a short-term technical adjustment rather than a reflection of fundamental weakness. Meanwhile, leading brokerages remain optimistic about the company’s long-term performance, maintaining ‘Buy’ ratings with double-digit upside potential over the next 12 months.
Nomura Maintains Buy Rating, Adjusts Target Price to ₹1,873
Global brokerage Nomura puts a Buy rating on Havells India with a slight downward revision in the target price—from Rs 1,943 to Rs 1,873 per share, implying an upside of approximately 16% from current market levels.
Nomura’s valuation is based on a 48x multiple of FY27 projected earnings per share (EPS), with the stock currently trading at 44x FY27F EPS—a level they consider attractive in light of the company’s diversified revenue streams and solid earnings outlook. While rising competition in the cables and wires segment prompted a minor revision, Nomura expects Havells to maintain its valuation premium near the midpoint of its historical 40–60x trading band.
Key drivers for the company’s performance, as outlined in Nomura’s note, include:
- Sustained 15–16% revenue growth (excluding the Lloyd business) across FY26–FY27
- Improving profitability metrics, addressing prior concerns over structural margin pressures
- Stable EBITDA margins forecasted at 11.1% and 11.5% for FY26 and FY27 respectively
- Slight 1–2% reduction in EPS estimates, largely due to lower anticipated non-operating income
Nuvama Retains Buy Rating, Target Price Set at ₹1,890
Nuvama Institutional Equities has also put a Buy rating on Havells India, setting a target price of Rs 1,890, underpinned by a 52x FY27 EPS valuation. The brokerage highlights Havells’ resilience and operational consistency, citing the company’s ability to navigate multiple headwinds, including:
- Profitability challenges in Lloyd
- Raw material cost volatility in the cables division
- Pricing pressure in the lighting segment
- Muted performance in the switchgear business
Nuvama forecasts 16% CAGR in revenue and 20% CAGR in EBITDA and PAT between FY25 and FY28, driven by operational efficiencies, product mix optimisation, and expanding capacity across strategic verticals.
Additionally, they underscore the importance of a revival in consumption trends, particularly in light of delayed summer conditions, which may temporarily affect primary sales in the RAC (Room Air Conditioner) category in Q1FY26. Nonetheless, the brokerage remains confident in the long-term growth trajectory of the Lloyd brand, citing calibrated efforts to balance market share expansion and margin improvement through cost-control initiatives.
