INSUBCONTINENT EXCLUSIVE:
Dolat Capital has downgraded Havells India stock to reduce from accumulate and slashed target price to Rs 540 from Rs 650
The stock closed doen 7.31 per cent at Rs 498.50 while the BSE Sensex closed 3934.72 points down (-13.15 per cent) at 25,981.24.
Havells
India Ltd., incorporated in 1983, is a largecap company with a market cap of Rs 31202.53 crore.
Investment RationaleGiven the already
subdued demand for its base products, the global pandemic is putting fuel in the fire, as masses are preventing themselves for doing any
activities outside, said Dolat.
FinancialsHavells India's key products/revenue segments include Cables which contributed Rs 3232.72 crore
to sales value (32.14 per cent of total sales); Electrical Consumer Durables which contributed Rs 1981.48 crore to sales value (19.70 per
cent of total sales); Others which contributed Rs 1855.56 crore to sales value (18.44 per cent of total sales); Domestic Switchgears which
contributed Rs 1656.27 crore to sales value (16.46 per cent of total sales); Light Fittings - Fixture which contributed Rs 1292.67 crore to
sales value (12.85 per cent of total sales); Other Operating Revenue which contributed Rs 28.73 crore to sales value (0.28 per cent of total
sales), Export Incentives which contributed Rs 10.19 crore to sales value (0.10 per cent of total sales)for the year ending March 31, 2019
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 2273.29 crore, up 1.82 per cent from last quarter
sales of Rs 2232.65 crore and down -9.93 per cent from last year same quarter sales of Rs 2523.81 crore
The company has reported net profit after tax of Rs 201.22 crore in the latest quarter.