Shares of Havells India Ltd rose nearly 6% after foreign brokerage UBS upgraded its rating to buy from neutral. Havells India stock gained 5.63% to Rs 1371.50 against the previous close of Rs 1298.35 on BSE. Market cap of the firm rose to Rs 83,698 crore. With today's rally, Havells India stock has approached its 52 week high of Rs 1405.85 hit on September 2, 2022. The stock fell to a 52-week low of Rs 1092 on December 26, 2022.
Total 1.15 lakh shares of Havells India changed hands amounting to a turnover of Rs 15.51 crore on BSE. Market cap of the firm rose to Rs 83,639 crore on Tuesday.
In terms of technicals, the relative strength index (RSI) of the stock stands at 50, signaling the stock is neither overbought nor oversold. Havells India stock has a one-year beta of 0.8, indicating low volatility during the period. Havells India shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
UBS upgraded the stock to buy with a target of Rs 1900
The brokerage said, "Structural growth for the company is back into focus alongside a cyclical kicker. Concerns of past two years are over now and capital allocation to turn accretive."
The brokerage termed Havells India as the best choice to play the consumer electricals business in terms of valuation.
"Sustained revenue share gains, a higher share of premium products, and a turnaround at Lloyd to aid margins of Havells India," UBS added.
The company will announce its Q1 earnings on July 20. In the fourth quarter of the last fiscal, Havells India reported a 2.5% rise in profit led by strong sales for air conditioners. Profit rose to Rs 362 crore in Q4 from Rs 353 crore a year earlier.
Revenue from the company's Lloyd consumer segment, which is its second-biggest after cables, climbed nearly 32% to Rs 1264 crore. The cables business reported a 5.4% rise in revenue. Total revenue from operations rose 9.8% to Rs 4850 crore
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