According to Goldman Sachs, Havells India is anticipated to revive its revenue growth into the double digits starting from the March quarter, after experiencing two consecutive quarters of single-digit growth.
In morning trade on February 27, shares of Havells India Limited surged 4 percent, reaching a 52-week high of Rs 1,482. This upswing came after Goldman Sachs upgraded the rating for the wires and cables manufacturer from “neutral” to “buy.”
Additionally, the global brokerage raised the price target for Havells India Limited to Rs 1,660 from Rs 1,540, marking an upside potential of 17 percent from the previous session’s close.
Goldman Sachs holds a positive outlook on Havells’ cost-control measures, particularly its strategic decision to transition outsourcing to in-house manufacturing facilities. The company’s commitment to investing in brands and human resources, despite market downturns, is also viewed favorably.
The brokerage firm anticipates that Havells will return to double-digit revenue growth starting from the March quarter, following two consecutive quarters of single-digit growth. Furthermore, the expected improvement in margin contribution from the Lloyd brand is expected to enhance visibility on profitability, consequently leading to a valuation increase.
In the December quarter, Havells India Limited posted a 1.4 percent year-on-year (YoY) increase in net profit, reaching Rs 287.9 crore, while the company’s revenue saw a 6.8 percent rise to Rs 4,400.6 crore.
As of 11:20 am, the stock was trading at Rs 1,424 on the NSE, marking a 2.2 percent increase from the previous close. Over the last three months, the stock has gained 12.5 percent.
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