Shares of consumer electronics maker Havells India Ltd hit their record high for the second straight session after global brokerage Goldman Sachs upgraded its rating to a ‘buy’ from ‘neutral’.The leading wires and cable maker’s price target was also raised to Rs 1,660 from Rs 1,540. Havells India stock gained 4.52% to a record high of Rs 1535 against the previous close of Rs 1469.30 on BSE. Market cap of the firm rose to Rs 96,242 crore.
The stock fell to a 52-week low of Rs 1128.10 on March 29, 2023. In the last two sessions, the stock has gained nearly 8%.
In the previous session, the Havells India stock touched a high of Rs 1481.30 after the brokerage’s upgrade. Goldman Sachs said Havells' cost-control initiatives are positive. Its strategic move to shift outsourcing to its manufacturing facilities and company's continued investments in brands and human resources, even during a downturn, are favourable, according to the brokerage.
Goldman Sachs expects Havells to resume revenue growth in the teens from the March quarter, following two consecutive quarters of single-digit growth. The expected improvement in margin contribution from the Lloyd brand will enhance visibility on profitability, subsequently driving an increase in valuation.
The company reported a 1.4 percent year-on-year (YoY) rise in net profit to Rs 287.9 crore in Q3, while the company's revenue increased 6.8 percent to Rs 4,400.6 crore.
Havells India stock has a one-year beta of 0.3, indicating low volatility during the period.
In terms of technicals, the relative strength index (RSI) of the stock stands at 71.4, signaling the stock is trading in the overbought zone. Havells India shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Havells India is engaged in consumer electrical/electronics and power distribution equipment manufacturer with products ranging from industrial and domestic circuit protection switchgears, cables, motors, pumps, solar products, fans, power capacitors, LED lamps and luminaries for domestic, etc.
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