Havells Share Price Target 2022, 2023, 2024, 2025, 2030: Havells India Ltd is an Indian multinational electrical equipment company. If you are planning to invest in Havells India share then you are definitely finding some good research about the company.
In this article, I will evaluate the business of the company including its strengths and weaknesses. Also, we will try to predict the target for Havells India for the upcoming years. So, stay with us to find out your answers.
Havells India Ltd was incorporated as Havell’s Pvt Ltd in August 1983. Later it was converted into a public limited company in March 1992. The company started its operations by producing miniature circuit-breakers and distribution boards in the year 1984.
Mr. Qimat Rai Gupta was the founder of the company. The company headquarter is located in Noida, Uttar Pradesh.
Currently, Mr. Anil Rai Gupta is the chairman and MD of the company.
Busniess Model of Havells India
The company operates in the business segment such as switchgear, Cables, LED Lighting & fixtures and electronic consumer durables (ECD) segment.
Havells India manufactures home appliances, lighting for domestic, commercial and industrial applications, LED lighting, fans, modular switches, wiring accessories, water heaters, industrial and domestic circuit protection switchgear, industrial and domestic cables, and wires, induction motors, and capacitors among others.
The company owns some brands like Havells, Lloyd, Crabtree, Standard Electric, Reo and Promptech. Havells India has a global presence with 23 branches / representative offices with over 6,000 workers in over 50 countries.
Havells India Ltd. has 11 manufacturing plants in India located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and Bengaluru.
Key Products and Services :
- Lloyd Consumer Durables
- Water Heaters
- Personal Grooming
- Water Purifier
- Air Coolers
- Flexible Cables
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The current share price of Havells India is in the range of ₹1280-₹1320. The market capitalization of the company is around ₹80,000 Cr. This large-cap company is trading at a P/E of 67.16 which is high from its sector P/E of 48.64.
The company is a fundamentally strong company that is continuously showing good growth. Havells India is a cash-rich company, so the company may handle its minimal debt.
In the quarter ending June, the company posted lower than estimated profit. The sales were a little bit down. The following are the Havells Share Price Target 2022:
|Havells Share Price Target 2022|
Havells India, is a strong brand, with its continuously launching new products to expand its product offering and continues to remain focused on the ‘Deeper into Homes’ strategy.
The company is confident of being a market leader supported by factors such as urbanization, electrification, young demography, and consumer aspiration for brands.
Also, with the help of automation, the company has continued to delight customers, achieve better channel partner relationships, and improve engagement with employees.
|Havells Share Price Target 2023|
The company has a strong dealer count of 10,500 and continues to deploy its financial capital to expand distribution reach, and strengthen branding and R&D.
The famous LLYOD brand is under Havells India Ltd. Lloyd has been successfully assimilated with Havells’ culture and the organization. The brand embarked on a journey 2 years ago and it is on the right course firming up its position in the minds of the consumers and trade partners.
|Havells Share Price Target 2024|
Apart from all, the management of the company needs to increase its sales significantly. Over the last few years, the company is not able to generate good sales growth.
Also, the management should try to capture market share from other players. Because competition in this industry is so high.
|Havells Share Price Target 2025|
The Indian lighting industry is evolving rapidly due to the shift from conventional bulbs to LEDs, which is being driven by increasing government energy conservation initiatives, rising consumer awareness about energy-efficient products and innovative product offerings in sync with the megatrend of digitization.
An increase in Urbanisation (from 32.78% in 2015 to 34.03% in 2018) is positively impacting the demand for electrical products. In the future, this trend will continue and Havells will be benefited.
|Havells Share Price Target 2030|
Strengths of Havells India Ltd.
Financial Strengths :
- The company has been maintaining a healthy RoCE of 27.35% over the past 3 years.
- The company is virtually debt free.
- The healthy interest coverage ratio of 16.91.
- The company has an efficient Cash Conversion Cycle of 3.96 days.
- The company has good cash flow management – CFO/PAT stands at 1.02.
- High promoter holding of 59.47%.
- The company has a strong degree of Operating leverage, Average Operating leverage stands at 3.18.
- Sales and profit growth are significant.
- EPS of the company is increasing year on year basis.
Other Strengths :
- Reputed brand name and established market position.
- Diversified product portfolio.
- Global presence.
- Stable Leadership – an unchanged board composition in the last two years continues to provide stability.
- Well-managed inventory and strong cash flow generation.
Weaknesses of Havells India Ltd.
Financial weaknesses :
- The company has shown poor revenue growth of 8.61% over the past 3 years.
- The company is trading at a high EV/EBITDA of 37.29.
- The quick ratio and current ratio both are below standard.
- The last 3 years sales growth is not satisfactory.
Other threats and weaknesses :
- High competition in the industry.
- Demand for new housing has been sluggish for a couple of years. Continued weak demand for housing could impact demand for electrical goods.
- Non-availability of regular and quality electricity supply may impact the overall demand for electrical products.
- As a substantial portion of the revenue of the Company is dependent on the consumption of commodities like Copper and Aluminium, high volatility in their prices may impact margins in the short term.
Annual Reports of the company –
Competitors of Havells India
Bajaj Electricals Ltd, BPL Ltd, Dixon Technologies, Finolex cables, Polycab India, and Orient Electric Ltd. are some major competitors of the company.
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Havells India Price Target 2022, 2023, 2024, 2025, 2030
|Havells Target Price for Long Termm|
|First Target (2022)||₹1370|
|First Target (2023)||₹1474|
|First Target (2024)||₹1540|
|First Target (2025)||₹1620|
|First Target (2030)||₹2380|
The electrical industry has immense growth potential, especially considering the increased penetration of electricity and home improvement drive. Historically, the industry had a high incidence of unorganized suppliers.
Over the years, there has been a gradual shift of demand from unorganised to organised and COVID has in fact accelerated this process.
In this environment, Havells India Limited, having an extensive manufacturing base with backward integration could seize the opportunity. The preference of end consumers is also structurally shifting towards branded and good-quality products which augur well for HIL’s strategy to continue investing in R&D and brand building.
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Disclaimer – In this article we have just evaluated the company also we are not a SEBI registered advisor. We have not provided any investment advice on this stock. Before doing any investment please research yourself or take the advice of your financial advisor.
Is Havells a debt free company?
The company has a debt burden of ₹ 492.20 Cr.
What does Havells company do?
Havells India Ltd is a leading Fast Moving Electrical Goods (FMEG) Company. The company is a major power distribution equipment manufacturer with a strong global presence.
Is Havells a good company?
The financial condition of the company is very strong. The management of the company is very good and is delivering good results on continue basis.
Who is the owner of Lloyd AC?
Havells India is the owner of Lloyd AC.