Havells shares rise 4% on Q3 earnings, interim dividend; here are fresh price targets 

Shares of consumer electronics maker Havells India Ltd surged 4% after the firm reported a 1.7% fall in consolidated net profit for the December 2024 quarter. Havells India reported a profit of Rs 283 crore in Q3 against a profit of Rs 288 crore in the December 2023 quarter. The company also declared an interim dividend of Rs 4 per share for its shareholders, with the record date fixed as January 22.

Havells stock climbed 3.89% to Rs 1617.95 on BSE today. Market cap of the firm stood at Rs 98,530 crore.

Havells India stock has a one-year beta of 0.8, indicating low volatility during the period. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 33.8, signaling the stock is trading neither in the overbought nor in the oversold zone. Havells India shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

Revenue climbed 11 percent YoY to Rs 4,883 crore in the December  quarter against Rs 4,401 crore in the Decemeber 2023 quarter. 

Segmentally, the Switchgears segment reported a 10.8% YoY growth at Rs 577 crore while the cable segment gained 7.3% YoY. Lighting & Fixtures segment grew 2.5% YoY, Electrical Consumer Durables segment saw a growth of 15% YoY and the other segments’ growth came at 22.8% YoY.

Global brokerage UBS has a buy call on the electronic goods stock.

It has a target price of Rs 2,145 on Havells. 

UBS said weak B2C margins of Havells signal a slower consumer demand recovery while potential pricing impact is likely to lead to earnings downgrades for Havells.

UBS is bullish on KEI and Polycab due to a 250 basis points quarter-on-quarter (QoQ) margin gain in cables.

Brokerage INVESTEC has a buy rating on Havells post Q3 earnings. 

It has maintained a buy call with target price of Rs 1,850. 

INVESTEC said revenues and gross margins came broadly in-line. However, higher operating expenditure was unexpected. The firm reported mixed performance across segments, according to Investec. 

JP Morgan has a Neutral call on Havells with a target of Rs 1,750. 

The brokerage said Havells' earnings came below expectations due to margin pressures. The growth in Cables & Wires was muted due to channel destocking amid copper price softness On the other hand, the Electrical Consumer Durables (ECD) business grew 15% year-on-year (YoY), boosted by festive demand. Switchgears revenue rose 11% YoY, driven by real estate and project business and the Industrial segment remained muted.

Nuvama has a buy call with a target price of Rs 1,940. 

Havells’s 3QFY25 result was a mixed bag. Healthy revenue (+11% YoY) and gross profit growth (15% YoY) were offset by higher employee costs (23% YoY) and other expenses (12% YoY; relocated SG plant to another existing location). While the ECD segment posted strong growth (15% YoY; 16% CAGR), margins were impacted by deepening R&D and and distribution aspects of the business, said Nuvama. 

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.