ECONOMY

Havells India Q1 Review – Likely Market Shares Gains Across Segments: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Havells India Ltd. reported stronger Q1 FY22 than consensus estimates.

In-spite of steep inflationary pressures, the company was able to improve gross margin by 90 basis points YoY due to:

  1. better revenue mix,

  2. selective price hikes across segments and

  3. cost saving initiatives.

The company has gained market shares in most segments (our view) as its price hikes were relatively lower than unorganised/ smaller players.

Ahead, we model recovery in revenues/ profitability of Lloyd which was impacted due to lockdown in key summer season.

We model Havells India to report profit after tax compound annual growth rate of 19.3% over FY21-FY23E with:

  1. strong volume growth,

  2. price hikes in high single digits and

  3. benefits of cost saving initiatives and recovery in Lloyd.

Click on the attachment to read the full report:

ICICI Securities Havells Q1FY22 Results Update.pdf

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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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