Havells India Q2 Review
: Normalcy to Return by Q4 Onwards
Yes Securities has reiterated its ‘Add’ rating on Havells India Ltd. with a revised target price of Rs 1,698. The brokerage firm believes that the high channel inventory is getting liquidated and normalcy is expected to return by the fourth quarter onwards.
Demand Expected to Bounce Back
The demand for Havells India products is expected to bounce back with improved real estate absorption and positive sentiments for festive demand. This is likely to have a positive impact on the company’s sales and revenue growth.
Valuation and Target Price
Yes Securities continues to value Havells India at 50 times, as the company’s deterioration in contribution margins is temporary and will bounce back on improved demand. The brokerage firm has revised its target price to Rs 1,698, indicating a potential upside for investors.
Insights and Analysis
The Q2 review of Havells India suggests that the company is on track to recover from the current challenges. The expected return to normalcy by Q4 onwards is a positive sign for investors. However, it is essential to consider the overall market trends and Indian stock market news before making any investment decisions.
Investment Strategy
Investors looking to invest in Havells India should consider the company’s long-term growth prospects and the overall Indian stock market trends. It is crucial to have a well-diversified portfolio and a long-term investment strategy to minimize risks and maximize returns.
Conclusion
In conclusion, the Q2 review of Havells India indicates a return to normalcy by Q4 onwards, driven by improved real estate absorption and festive demand. Yes Securities’ revised target price of Rs 1,698 suggests a potential upside for investors. However, it is essential to consider the overall market trends and Indian stock market news before making any investment decisions.
