The Havells India share is down a whopping 3% in an otherwise positive market. In fact, most analysts believe there is some amount of profit booking in the stock after the recent run-up in the share price. The share price of Havells India has rallied 13% in the past 30 days. Good news for investors- key brokerages like Nomura and Nuvama indicate that the stock promises big returns over the next 12 months
Nomura maintains Buy on Havells India
Nomura has maintained a Buy on the stock but cut the target price marginally. They have now set the target price for the stock at Rs 1,873 per share fom Rs 1,943 earlier. This implies almost 16% upside from current levels. This new target is based on Nomura’s earnings assumption of 48x FY27 EPS. They have lowered the target on the back of rising competition in the cable and wire segment. Given the diversified business mix, Nomura expects Havell’s valuation premium to sustain around the midpoint of its historical trading band of 40-60x.
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According to them, “the stock is currently trading at 44x FY27F EPS, which appears attractive given the outlook. Maintain Buy.” The international brokerage house expects “ healthy demand tailwinds in Cables and recovery in ECD segment to sustain 15-16% revenue growth (ex-Lloyd) over FY26-27.” They added that with profitability improving, “ concerns over structural reduction in profitability may get addressed, and should be on track for 13.1%/13.6% in FY26/FY27.” Overall, the brokerage’s estimates for EBITDA margins remain unchanged at 11.1%/11.5%. They have cut the EPS slightly, about 1-2%, “on lower other income.”
Nuvama maintains Buy on Havells India
Nuvama maintains Buy on Havells India with a target of Rs 1,890 per share. According to the brokerage house, the stock has been a “consistent performer overcoming various hiccups such as profitability in Lloyd, raw material volatility in cables, continued price erosion in lighting and subdued switchgears performance.” As a result, they expect the company to continue its overall “steady performance” and forecast “revenue/EBITDA/PAT of 16%/20% over FY25–28. They are valuing the stock at 52x FY27 EPS .
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Nomura pointed out that consumption revival remains key.
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