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Add Havells India, target Rs 619: ICICI Securities

Add Havells India Ltd. at a price target of Rs 619.0.

Last Updated: May 15, 2018, 09.52 AM IST
ICICI Securities has an add call on Havells India Ltd. with a target price of Rs 619. The current market price of Havells India Ltd. is Rs 542.75. Time period given by the brokerage is Two Years when Havells India Ltd. price can reach defined target.
Havells India Ltd., incorporated in 1983, is a large-cap company with a market cap of Rs 33973.69 crore.

Investment rationale by ICICI SecuritiesHavells India (Havells) reported strong topline growth in Q4FY18 on the back of 18% like-for-like growth (adjusted for excise) in the core business. This came onthe back of strong growth in lighting, ECD and cable segments while the switchgear segment remained muted. The Lloyd segment remained flattish YoY owing to pre-buying in Q3FY18. Core Havells business EBITDA margin improved 120bps YoY expansion in Q4FY18 to 14.6% while Lloyd margin stood at 12.4% in a seasonally strong quarter.

Havells is setting up a new manufacturing facility for air conditioners (AC) in FY19, which is expected to improve Lloyd margins in the medium term. We maintain our ADD rating on Havells with a revised DCF-based FY20 target price of Rs 619 (Rs 621 earlier)
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