Havells India - Q4 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs1,237, Upside: 20.1%

- Havells delivered better than expected revenue growth of 50% yoy, with ECD being the best performer. All other segments have grown in-line with revenue growth except Lloyd which grew 29% yoy. EBITDA margin saw 411bps improvement to 15.2% on cost controls and stable gross margins.

- Broad based growth was seen across segments with Switchgears/Cable & Wires/Lighting & Fixture/ECD/Lloyds/Others registering growth of 53%/50%/40%/70%/29%/70%.

- Gross margins expanded 127bps to 37.4% as low-cost inventory and timely pricing action has enabled company to offset increased commodity inflation. HAVL is the only company in the electrical/durables space to report gross margin expansion among the companies that have reported so far.

- Expect FY21-23E revenue growth of 13% CAGR (core Havells+12% and Lloyd +17%). Enhanced distribution, new product launches, sustained market share gains and better margin performance will enable it to outperform its peers. We estimate FY21-23E EBITDA and PAT CAGR of 13% and 18% respectively (8% increase in our EPS estimates) and continue with our positive stance on the stock and upgrade to BUY with TP of Rs1,237

Shares of HAVELLS INDIA LTD. was last trading in BSE at Rs.1015.75 as compared to the previous close of Rs. 1027.85. The total number of shares traded during the day was 75438 in over 3900 trades.

The stock hit an intraday high of Rs. 1036.75 and intraday low of 1014. The net turnover during the day was Rs. 77117850.

Source : Equity Bulls

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