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Shares of Havells India surged by 3.9%, reaching an intraday high of Rs 1,617.95 on the BSE, following the company’s Q3 FY25 results
Havells (representative image)
Shares of Havells India surged by 3.9%, reaching an intraday high of Rs 1,617.95 on the BSE, following the company’s Q3 FY25 results announced on Thursday. Although the company posted a slight 1.7% year-on-year (YoY) decline in net profit at Rs 283 crore, compared to Rs 288 crore in Q3FY24, its net revenue grew by 11% YoY, reaching Rs 4,883 crore, up from Rs 4,401 crore in the same quarter last year.
Segment-wise, the Switchgears division saw a 10.8% YoY growth, generating Rs 577 crore in revenue. The Cable segment posted a 7.3% YoY increase, while the Lighting & Fixtures segment grew by 2.5%. The Electrical Consumer Durables segment reported a robust 15% YoY growth, and the other segments saw a strong 22.8% YoY rise.
Additionally, the company declared an interim dividend of Rs 4 per share, with the record date set for January 22.
Brokerage Views on Havells’ Q3 Results:
UBS: Buy | Target Price: Rs 2,145 | Upside Potential: 37.7%
UBS has maintained a “Buy” rating on Havells with a target price of Rs 2,145. While UBS acknowledges Havells’ weak B2C margins reflecting slower consumer demand recovery, they also caution that potential pricing pressures could result in earnings downgrades. UBS remains positive on companies like KEI and Polycab, citing a 250 basis points quarter-on-quarter (QoQ) margin improvement in cables.
JP Morgan: Neutral | Target Price: Rs 1,750 | Upside Potential: 12.4%
JP Morgan has maintained a “Neutral” rating with a target price of Rs 1,750. The brokerage notes that Havells’ earnings were below expectations, primarily due to margin pressure. Growth in the Cables & Wires segment was subdued due to channel destocking amidst softer copper prices, although the Electrical Consumer Durables (ECD) segment saw a 15% YoY boost, driven by festive demand. Switchgears revenue grew 11% YoY, supported by the real estate and project business, but the Industrial segment remained flat.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
