Pressure will be on Havells India due to cautious scenario – Pressure will be on Havels India due to Vigilant Scenario – Business Standard

The share of the country’s largest listed consumer electrical and durable company Havels India in the fast market was 3 % soft on Wednesday. Although the fourth quarter financial figures remained strong and the company overtook the estimate in terms of revenue and operational profits, the stock was the most falling share in the BSE 100 index. The negative feeling for the stock was from the vigilant remarks of the management about the approach to the cooling equipment. The shares have a mixed attitude of brokerage. Some have cut their income estimates while others have increased it slightly. The entire performance in the fourth quarter was excellent, although there were also laggards at some places. The company registered a good growth of 20 per cent in the fourth quarter of the financial year 25 than by a rise of 21.2 per cent in the cable and wire (C&W) business and a low base of 39.5 per cent due to a low base of 21.2 per cent and low base. Other segments such as consumer durables, switchgear and lighting were disappointed and registered a growth of 9.4 per cent, 6.2 per cent and 0.5 per cent respectively. Talking about the margin, gross margin declined by 70 basis points on an annual basis, but it repaid with a decrease in employee and advertising expenditure. With this, the company recorded a 20 per cent increase in operational benefits with high operating capacity, while it retained the operational profit margin at 11.6 per cent. The company has indicated that consumers’ morale is still dull due to high inflation. However, Lloyd’s sales were good and the segment margin gained 350 basis points to 6.2 per cent. But the demand for the room air conditioner segment (in March and April) was weak due to mild heat, especially in South India. This may affect sales in the June quarter, although the company is expected to improve. The company is keeping an eye on the increase in market share along with improving profitability in looked business. The switchgiers segment saw 6 per cent growth on an annual basis and 20 per cent on a gradual basis, with residential switchgiers business contributed 75 per cent to the sales of the segment while the rest came from industrial switchgiers. The quarter increased due to expansion of product portfolio in the residential segment, an increase in market share in project business and medium and small cities. Although the contribution to margin in the quarter declined by 230 Aadhaar to 37.9 per cent, the company has later projected the contribution of 38-40 per cent to the margin. Analysts led by Nuwama Research’s immovable Lohade have increased 4-5 per cent of income estimates of FY 26-27 keeping in mind the better margin in switchgiers and loud. Brokerage hopes that recently the government’s steps (tax savings and favorable cash scenario) will help again increase demand. The demand scenario for wire and cable business remains strong and the company’s new plant in Tumkur is gaining market share in medium and small markets. However, Nomura Research has reduced its price-income ratio from 50 times to 48 times in view of the increasing competition in this business. Despite the cuts, Siddharth Bera and Kapil Singh of Brokerage believe that the shares will remain around the point between 40–60 times the premium historic trading realm, given a diverse commercial mixture of Havels and a strong income increase of 26 per cent per share per share. Given the near future landscape and expensive evaluation, Kotak Research has cut the income estimates of FY 2026-27 by 3-4 per cent and revised its fair price to Rs 1,400. He has changed revenue (taking into account the weak landscape for cooling devices in the first quarter) and cutting 20–30 basis points in margin estimates. First Published – April 23, 2025 | 10:35 pm IST related posts

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