Havells India - Domestic story intact, Sylvania a bit rusty - Emkay

- Domestic business healthy despite industry moderation. Maintain 15-20% topline growth guidance in FY13E led by new product, market share gain & rising distribution network

- Domestic appliances - the new growth driver; initial response has been upbeat. Management expects this segment to be a Rs 5bn business in next 3-4 years

- Subdued demand environment in Europe has impacted Sylvania operations. Management has guided for flat sales and 7% EBIDTA margins for FY13E

- Increased payout ratio to 25% further reiterates our positive stance. Valuations at 13.4x FY14E earnings of Rs 40.7/share and 7.8x FY14E EV/EBIDTA. Retain Buy with TP of Rs 600.

Source : Equity Bulls

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