ICICI Securities recommends buy on Havells India with ₹1,500 target
ICICI Securities is recommending Havells India as a buy, setting a target price of ₹1,500 after the company posted solid growth in Q2FY27.
Even with challenges like rising aluminum costs and inflation eating into profits, Havells saw broad-based growth across categories.
This new target values the company at 46 times its projected FY28 earnings.
Havells raises prices, nears pull-led distribution
Havells saw strong gains in switchgears and cables and wires last quarter, while its Lloyd division also grew despite pricier raw materials.
To keep up with input cost inflation, they've already raised prices, over 30% for cables and wires and 10-15% elsewhere, and management indicated that further price hikes of 5-7% may be required in Q3FY27.
Plus, they're almost done shifting to a pull-led distribution model that focuses more on real customer demand than just filling up stores, which should make their brand even stronger going forward.