Havells India is a leading electrical equipment company in the country, known for its comprehensive range of products ranging across home and kitchen appliances, water purifiers, lighting applications, fans, switches, motors, cables and wires, et cetera.
The market capitalisation of Havells India, as of March 2018, is more than Rs.32,000 crore.
Company’s Wealth and Recent PerformanceQ1 FY 2018-19
The key highlights of the company’s financial performance for the Q1 FY 2018-19, ended 30 June 2018 are as follows:
- The company’s net revenue (excluding Lloyd) recorded an increase of 19% and stood at Rs.1,888 crore as compared to Rs.1,593 crore in Q1 FY18.
- Havells India’s net revenue including Lloyd registered a growth by 40% and stood at Rs.2,596 crore as against Rs.1,860 crore in the corresponding quarter previous year.
- The company’s net profit was up by 73% to Rs.210 crore as against Rs.121 crore in Q1FY18.
- EBITDA (Earnings before interest, taxes, depreciation, and amortization) (excluding Lloyd) jumped by 60% to Rs.255 crore as against Rs.60 crore in the corresponding quarter previous year.
- EBITDA including Lloyd was up by 86% to Rs.321 crore as against Rs.172 crore in Q1 FY 2018.
- Profit before tax (PBT) including Lloyd grew by 79% to Rs.304 crore as against Rs.170 crore in the corresponding quarter previous year.
- Havells India’s switchgear business jumped 19% and stood at Rs.404 crore as against Rs.339 crore in Q1 FY18.
- Lighting and Fixtures business reported an increase of 25% and stood at Rs.257 crore as compared to Rs.205 crore in in Q1 FY18.
- Cable business was also up by 8% to Rs.750 crore as against to Rs.636 crore in Q1 FY18.
- The company’s electrical consumer durables business jumped 33% and stood at Rs.476 crore as compared to Rs.358 crore in Q1 FY18.
The key highlights of the company’s financial performance for the full FY 2017-18, ended 31 March 2018 are as follows:
- Havells India’s standalone net revenue (excluding Lloyd) was up by 10% and stood at Rs.6,724 crore as against Rs.6,135 crore in FY 2016-17.
- EBITDA was up by 14% and stood at Rs.937 crore as against Rs.824 crore in the previous financial year.
- The company’s PBT and Exceptional Items for the year jumped 8% to Rs.893 crore as compared to Rs.827 crore in FY 2017.
- The company’s net revenue (including Lloyd) recorded a jump by 33% to Rs.8,138 crore, as against Rs.6,135 crore in the previous financial year.
- PBT and Exceptional Items was up by 21% to Rs.1,003 crore as compared to Rs.827 crore.
- EBITDA grew by 27% to INR 1,049 crore as against Rs.824 crore in the previous financial year.
- Net Profit before Exceptional items jumped by 17% to Rs.701 crore from Rs.597 crore in FY17.
- Net Profit after Exceptional items grew by 32% to INR 713 crore as compared to Rs.539 crore in the previous financial year.
- The standalone total income for the Q3 FY18 was reported to be Rs.1,993 crore - an increase of more than 15% over the same quarter previous year. Considering the segment-wise split of this income, a significant proportion of it came from cables and electrical consumer durables, both of which reported a significant increase over the September quarter.
- Standalone Profit before tax for this quarter was reported to be at Rs.269.16 crore. Comparing this with the corresponding quarter of 2017, it can be seen that there has been an increase more than 25% in profit before tax.
- The standalone net profit for the period was Rs.194.36 crore, in comparison to Rs.152 crore over the same quarter, last year. Comparing the same parameter over a nine-month period, the net profit in 9M FY18 grew by roughly 10% over 9M FY17.
Havells India Stock Trends in 2018
- The opening price of the Havells India stock on January 1, 2018, was Rs.566.70 on NSE and BSE. Following the release of Q3 FY18 results, the price went up to touch Rs.580. However, by the end of the month, the stocks had shed heavily. The closing price on January 31, 2018, was Rs.522 on NSE.
- The downtrend continued in the month of February as well, owing to weak global cues. For a short while, the stocks entered the Rs.400 territory but managed to recover to stay above Rs.500. The closing price at the end of February was Rs.507.65 on NSE.
- The price of the stock in the month of March was at Rs.521. It decreased marginally towards the end of the month and stood at Rs.492.
- In the month of April, the scrip increased gradually by around 65 point. By the end of the month, the stock price stood at Rs.556.
- The price of the stock was up by few point in the month of May. The opening price of the stock at the end of May stood at Rs.563.
- The scrip increased marginally in the month of June and reached Rs.560. By the end of the month, the price of the stock stood at Rs.524.
- In the month of July, the scrip picked up the pace and increased by around 80 points. The opening price of the stock by the end of July stood at Rs.624.
- The price of the stock in August increased further and crossed Rs.700. By the end of August, the scrip stood at Rs.719.
- Havells India’s stock fell in the month of September and reached Rs.635. It picked up the pace a bit later in the month and as on 19 September 2018, the stock price stood at Rs.650.
Havells India Stock Trends in 2016 and 2017
- The price of Havells India stock at the start of January 2016 was close to Rs.300 on NSE and BSE. For a short while, the shares went below Rs.300 but did not stay there for long. Following the announcement of a special dividend of 300% in early February, the stock entered an upward trend. The closing price at the end of March was close to Rs.315.
- The rally continued in the month of April as well, driven by the launch of an entry-level modular switch. Following the announcement of Q4 FY16 results, the shares gained more and by the end of May, the stock price had crossed Rs.370. A final dividend of 300% was announced in June.
- Throughout the months of July and August, the shares continued to gain momentum. In early August, the stock price crossed Rs.400 and it remained in that territory for the next couple of weeks. At the end of September, the closing price of Havells stock was Rs.418 on NSE.
- In early October, the share price crossed Rs.450 on the back of Q2 FY17 results. However, it failed to stabilise at that range and fell down close to Rs.400. Post demonetisation in November, the stocks shed all the gains made over the last couple of weeks. Things did not change considerably in December. The closing price at the end of 2016 was close to Rs.340 on NSE and BSE.
- 2017 started well for the investors. The stocks made steady gains in January and once again crossed Rs.400. In February, the company announced the acquisition of Lloyds consumer durable business which helped Havells stock price stay on an upward trajectory. By the end of March, the stocks had crossed Rs.460.
- The upward trend was observed through the months of April and May as well. Following the announcement of dividend and Q4 results, the stock price crossed Rs.500. However, it failed to sustain that bearing for long and went down again. A final dividend of 350% was announced in June and the share price at the end of the month was close to Rs.460.
- Things did not vary significantly in July either. In August, it appeared that the shares will cross Rs.500 again but by the end of the first week, the price went down again. However, following the change in the directorate, the stocks commenced a steady rise and it continued it till mid-September. After staying above Rs.500 for a short while, the price went down again.
- In October, Havells stocks made even more gains on the back of updates and positive market cues. However, following the announcement of Q2 FY18 results, the stocks went down from being traded at around Rs.540 to Rs.480. Nonetheless, the stocks bounced back in November. It made more gains in December to close at Rs.562.45 on NSE, at the end of the month.
Should you invest in Havells India Limited?
- Havells India Limited is a market leader in electric equipment segment. Its market cap is more than Rs.30,000 crore - thrice as much as that of its nearest competitor, V-Guard Industries Limited. The same can be said for other financial metrics such as sales turnover, net profit, et cetera, which, in comparison to its peers like Crompton Greaves and others, are far more superior.
- The company has solidified its position in the FMEG sector owing to its exceptional marketing well-established distribution network. Over the course of last decade, the electrical giant has diversified its offering and moved into consumer segment, starting with fans, lights, appliances, et cetera. Interestingly, it received the same positive response as it did in the industry sector and soon became popular among common people.
- Furthermore, the housing sector in India is growing at a tremendous rate owing to the government’s emphasis on providing housing for all. The ‘Pradhan Mantri Awas Yojana’ scheme has already proven to be a huge hit among the people. It is quite likely that the ever-growing demand for houses will lead to an increase in demand for electrical equipments like MCBs, cables & wires, lights, et cetera. Havells, being a market leader, is placed strategically well to meet this demand.
- If you are looking for a safe investment in the electric equipment sector, Havells serves as a feasible option. The company has been around the block for more than 40 years and is fundamentally strong with sound financials. However, entry price may not be favourable at the moment. Whatever may be the situation, it is advisable to consult your financial planner and conduct your own research before investing.
Havells India is one of the largest Fast Moving Electrical Goods (FMEG) and power distribution equipment company in India with a strong global presence owing to its well-established infrastructure and distribution network. The company is deeply committed to the philosophy of ‘Make in India’ which is evident from its 12 manufacturing units across the country. It dominates the markets across a wide range of products like cables & wires, motors, fans, electric water heaters, lamps, lightings for domestic, commercial, and industrial application, home appliances, switches, et cetera, and a majority of these are energy efficient. It recently became the first FMEG company to offer doorstep delivery service through its ‘Havells Connect’ initiative. Havells has four prestigious brands, namely Lloyd, Crabtree, Standard, and Promptec. It has more than 90 branches in over 50 countries across the world.
History of the Company
The company’s roots can be traced back to 1958, when Qimat Rai Gupta commenced trading operations in Delhi. In 1971, he purchased the Havells brand and within the next five years, he set up the first manufacturing plant in New Delhi. Over the next couple of decades, Havells starting manufacturing MCBs, high-quality energy meters, in addition to setting up manufacturing plants for HBC fuses and switches. It also acquired a controlling stake in Duke Arnics Electronics Limited, Towers and Transformers Limited, and Standard Electricals Limited. Furthermore, it also entered into a joint venture with many international companies to boost its production and expand its market. Throughout these years, the company remained focused on industrial applications and it wasn’t until early 2000 that it entered the consumer market. Through 2000-2010, Havells boosted its manufacturing ability by setting up plants in cities like Haridwar, Baddi, Faridabad, and Noida.
Anil Rai Gupta - Chairman and Managing Director
Anil Rai Gupta is the son of the Late Sri Qimat Rai Gupta, and is the Chairman and the Managing Director of Havells. Prior to becoming the MD, Mr. Gupta served as the Executive Director of the company, starting in 1992. He has played an important role in transforming the company from an industrial product entity to consumer products enterprise. His vision and unparalleled marketing insight and strategies have made Havells a name synonymous with quality, trust, and electricals. The company thrived under his leadership and became the market leader in the FMEG segment. Mr. Gupta completed his graduation at Shri Ram College of Commerce, New Delhi and pursued higher studies at Wake Forest University, North Carolina, USA. He also has an MBA in marketing and finance.
Havells India Limited Listings in NSE, BSE, and Indices
The shares of Havells India Limited are available for trading on the National Stock Exchange Limited and Bombay Stock Exchange. The codes for the same are mentioned below:
BSE - 517354
NSE - HAVELLS
ISIN - INE176B01034
Sector - Electric Equipment
Coming to the stock market indices, the company is a part of NIFTY 100, NIFTY 200, NIFTY 500, S&P BSE 100, S&P BSE 200, S&P BSE 500, S&P BSE SENSEX Next 50, and many more.
QRG Towers, 2D, Sec-126,
Noida, Uttar Pradesh
India - 201304
Contact number - +91-120-3331000
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