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Target: ₹1,420
CMP: ₹1,353.95
In its FY23 annual report, Havells has emphasised on augmenting manufacturing, maximising value creation and increasing R&D investment. Having 90 per cent of products manufactured in-house ensures quality standards are maintained and customer needs are met.
Havells is focused on ensuring its presence across the value chain through increased presence in e-commerce, deeper penetration into India through the Rural Vistaar programme and Utsav stores, increased participation in B2B projects, and expanded footprint in international markets.
Havells continues to invest in R&D activities (₹550 crore over the past five years) to remain competitive in an environment where disruption is becoming the new normal. Lloyd has gained market share during the year and is now amongst the top 3 players in the industry. It expects to maintain its position over the medium term.
Operationally, Havells posted a resilient performance in FY23 with sales growing by 21 per cent despite subdued consumer sentiment, while PAT fell 17 per cent YoY owing to sub-optimal passon of input cost inflation. Despite expectation of softness in near-term demand owing to unseasonal rains and weak summer intensity, we continue to like Havells’ long-term growth strategy through continuous portfolio and distribution expansion and brand-building initiatives.
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