Havells India - Myth Resolved, Growth On Track, Retain BUY - Emkay

BUY
CMP: Rs437
Target Price: Rs460

We met Havells to analyze its stellar operational performance in H1FY12 and get an outlook on the business in this testing environment.

- New product launches across business segments and expansion in distribution network to drive 14-15% domestic revenue growth.

- Europe business fairly stable; LATAM and Asia to continue as revenue growth drivers for Sylvania. Margins to be sustained at 7.3% for FY12E.

- Strong H1FY12; Continuity of growth momentum in domestic operations and sustainability of Sylvania profitability in H2FY12 as well.

- Retain Buy with price target of Rs 460, thereby implying target multiple of 8.6x FY13E EV/EBIDTA.

Source : Equity Bulls

Keywords