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Havells India Limited
(HAVELLS)
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Rating:67Neutral
Price Target:
₹1,162.00
▼(-4.91% Downside)
Action:Reiterated
Date:10/22/26
The score is anchored by strong financial strength (very low leverage) and healthy profitability, but is held back by weaker latest-year cash conversion and negative price momentum. Valuation is also a headwind due to the high P/E and low yield, partially offset by a generally positive earnings-call outlook with margin normalization in key segments despite commodity and competition risks.
Positive Factors
Very low leverage
Exceptionally low leverage gives Havells substantial financial flexibility and reduces interest and refinancing pressure. A strengthening capital base alongside asset growth supports continued investment in products, capacity and distribution while improving resilience through business cycles.
Negative Factors
Weak latest cash conversion
The sharp latest-year decline in free cash flow means reported earnings are converting into cash less effectively than before. If this persists, it could constrain internally funded investment, dividends or other capital allocation and make operating performance more vulnerable to cash demands.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Exceptionally low leverage gives Havells substantial financial flexibility and reduces interest and refinancing pressure. A strengthening capital base alongside asset growth supports continued investment in products, capacity and distribution while improving resilience through business cycles.
Read all positive factors
Havells India Limited (HAVELLS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹635.56B
Dividend Yield0.99%
Average Volume (3M)93.94K
Price to Earnings (P/E)38.2
Beta (1Y)1.18
Revenue Growth16.50%
EPS Growth13.65%
CountryIN
Employees7,598
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)26.52
Shares Outstanding627,561,650
10 Day Avg. Volume131,661
30 Day Avg. Volume93,940
Financial Highlights & Ratios
PEG Ratio2.99
Price to Book (P/B)7.87
Price to Sales (P/S)3.30
P/FCF Ratio849.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,127.67Price Target Upside-7.72% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)25.71
Revenue Forecast (FY)₹272.29B
Havells India Limited Business Overview & Revenue Model
Company Description
Havells India Limited is a leading fast-moving electrical goods (FMEG) enterprise that manufactures, markets, and sells a wide spectrum of consumer electrical and electronic merchandise, both within India and across international markets. The comp...
How the Company Makes Money
Havells makes money primarily by manufacturing (and in some categories sourcing/assembling) branded electrical and consumer products and selling them through a multi-channel distribution network to end consumers, electricians/contractors, and inst...
Havells India Limited Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, driven by 35% year-on-year revenue growth, approximately 30% EBITDA growth, broad-based category growth, healthy volume trends, recovering Switchgear margins, progress in renewables and ongoing capacity expansion. However, the company continues to face cable margin pressure, elevated raw material costs, subdued Lloyd profitability, seasonal volatility and increasing competition in wires.Positive Updates
Strong Q2 Revenue Growth Across Categories
Q2 revenue grew 35% year-on-year, with growth across every category, including established businesses such as cables and Switchgears and the emerging renewables category. Consumer demand remained steady despite the inflationary environment.
Negative Updates
Cable Contribution Margin Declined Year-on-Year
Cables contribution margin declined by around 350 basis points year-on-year. Management attributed the decline primarily to aluminum price movements during the quarter and comparison with a strong base last year.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Q2 Revenue Growth Across Categories
Q2 revenue grew 35% year-on-year, with growth across every category, including established businesses such as cables and Switchgears and the emerging renewables category. Consumer demand remained steady despite the inflationary environment.
Read all positive updates
Company Guidance
Management said Switchgears contribution margins are coming back to normalized levels, which always used to remain between 38 and 40, with 38%, 39% contribution margins, although certain more actions are being taken in the third quarter; further price hikes could range between, product to product, 5%-7%. Cables and wires volume growth was about very close to double digits, cables contribution margins were approximately 15% in H1 and normal margins are between 15%, 15.5%, while the underground cable business is expected to have a good growth path over the next five, seven years and full expansion will be on stream in next 18 months. Lloyd is expected to start making profitability in the medium term, but management said it is difficult to give any timeline; RAC is close to almost 75% of the business and the aim is to bring it to around 60% over a period of time. Renewables is expected to become a healthy margin business, but it is too early to say what are the peak volumes, and no revenue guidance for FY 2027 was provided.Havells India Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 252.43B | 225.28B | 216.00B | 184.73B | 168.06B | 138.35B |
| Gross Profit | 72.85B | 74.48B | 64.61B | 54.67B | 47.14B | 40.79B |
| EBITDA | 26.57B | 26.79B | 24.34B | 20.92B | 17.77B | 19.21B |
| Net Income | 16.64B | 16.91B | 14.72B | 12.71B | 10.72B | 11.96B |
Balance Sheet | ||||||
| Total Assets | 147.43B | 147.46B | 138.09B | 124.48B | 111.57B | 105.23B |
| Cash, Cash Equivalents and Short-Term Investments | 12.08B | 23.72B | 33.58B | 30.36B | 20.49B | 26.99B |
| Total Debt | 2.39B | 2.65B | 3.19B | 3.03B | 2.23B | 6.16B |
| Total Liabilities | 49.58B | 52.78B | 54.68B | 49.84B | 45.32B | 45.20B |
| Stockholders Equity | 97.73B | 94.55B | 83.24B | 74.47B | 66.25B | 60.03B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 875.40M | 7.49B | 13.10B | -228.60M | 14.70B |
| Operating Cash Flow | 0.00 | 15.72B | 15.15B | 20.96B | 5.65B | 17.28B |
| Investing Cash Flow | 0.00 | -8.93B | -3.02B | -17.65B | 350.40M | -7.59B |
| Financing Cash Flow | 0.00 | -6.93B | -6.69B | -5.26B | -9.07B | -5.47B |
Havells India Limited Technical Analysis
Negative
1222.00
Price Trends
1122.62
Negative
1166.30
Negative
1231.00
Negative
Market Momentum
-24.38
Positive
36.29
Neutral
10.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HAVELLS, the sentiment is Negative. The current price of 1222 is above the 20-day moving average (MA) of 1056.31, above the 50-day MA of 1122.62, and below the 200-day MA of 1231.00, indicating a bearish trend. The MACD of -24.38 indicates Positive momentum. The RSI at 36.29 is Neutral, neither overbought nor oversold. The STOCH value of 10.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HAVELLS.
Havells India Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹174.25B | 21.79 | ― | 0.79% | 26.53% | 29.17% | |
67 Neutral | ₹635.56B | 38.23 | ― | 0.99% | 16.50% | 13.65% | |
67 Neutral | ₹1.18T | 37.00 | ― | 0.60% | 40.99% | 28.09% | |
62 Neutral | ₹122.42B | 29.87 | ― | 0.54% | 13.36% | 26.08% | |
60 Neutral | ₹232.61B | 34.60 | ― | 0.46% | 45.36% | 66.42% | |
59 Neutral | ₹261.42B | 141.89 | ― | 0.50% | 9.56% | -29.50% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:HAVELLS
Havells India Limited
1,012.75
-468.32
-31.62%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.