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Prabhudas Lilladhar’s latest report on Havells India highlights the company’s Q4FY24 results, indicating robust growth in its Electrical Consumer Durables (ECD) segment and a positive turnaround for the Lloyd division.

The report maintains an ‘Accumulate’ rating for Havells India, with a revised target price of Rs 1,774 (previously Rs 1,681) based on a Discounted Cash Flow (DCF) valuation. This target price implies a price-to-earnings ratio of 54x FY26 earnings per share.

However, the report mentions a downward revision in earnings estimates for FY25 and FY26 by 6.4% and 8.8%, respectively. This adjustment primarily stems from margin corrections due to increased advertising and employee expenses, as well as fluctuations in raw material prices.

Havells India achieved healthy revenue growth in Q4FY24, particularly driven by better-than-expected performance in the ECD and Cables segments, which saw year-on-year growth rates of 21.5% and 14.1%, respectively. In contrast, the Lloyd segment reported softer revenue growth at 5.4% year-on-year.

The company’s outlook remains positive, with expectations of continued growth momentum in the ECD segment due to increased summer-led demand and a pickup in real estate activity. Havells plans to pursue growth while maintaining profitability in the Lloyd segment, aiming to sustain its market share.