Target: ₹1,553
CMP: 1,309
Havells Limited (HAVL) is a leading consumer electrical and appliance company. HAVL offers various products such as switchgear, lighting & luminaires, Cables & Wires (C&W), fans, home appliances, air conditioners, washing machines, and electric water heaters.
The Company manufactures about 90 per cent of its products in-house in its 15 nationwide manufacturing units. Besides its flagship brand ‘Havells,’ the company’s other major brands include Crabtree, Standard, REO, and Lloyd. The company has a vast distribution network of 17,000+ direct dealers and 2,20,000+ retailers as of FY23.
The company’s primary export markets have been driven by switchgear products; it is gradually expanding in C&W, lighting, and ACs. HAVL aims to strengthen its brand recognition and enhance its market presence overseas.
HAVL has multiple organic and inorganic levers to continue its growth momentum while improving profitability.
Based on our expected cash flow run rate, we believe HAVL can undertake an acquisition every 3-4 years without imposing undue strain on the balance sheet. We believe the same can come to fruition once Lloyd becomes stable and self-sustaining.