Havells India shares declined 5 per cent in early trade despite strong Q4FY25 results, driven by growth in Lloyd and sustained momentum in cables segment.
The stock traded 3.22 per cent lower on the NSE at ₹1,611.10 as at 10.35 am, hitting a low of ₹1,583.40 in early trade.
While brokerages cheer the Q4FY25 performance, they are divergent on future risks flagging demand concerns for ACs stressing that delayed summer is a dampener.
Nuvama Institutional Equities said the company posted strong beat on all counts in Q4FY25. Revenue rose 20 y-o-y against 16 per cent consensus estimate, driven by cables and wires (C&W) (21 per cent y-o-y) and Lloyd (40 per cent y-o-y; low base).
EBIT margin rose 20bp above estimates of 230bp y-o-y led by robust switchgears and Lloyd segments, it added.
Emphasising Havells’ steady performance shall continue, Nuvama has maintained buy call at a target price of ₹1,890.
Summer set in with some delay this season and secondary sales in the room air conditioner (RAC) category in particular are weak in the southern region. This in turn can hurt primary sales for RAC in Q1FY26, according to Nuvama.
JM Financial has marginally trimmed FY26-27 earnings estimates by 1-2 per cent as increase in top line and margin estimates get negated by an increase in depreciation and lower other income due to investment in Goldi Solar. It continues to recommend buying at an unchanged target price of ₹1,900.
Nomura has assigned buy at ₹1,873 target price, expecting healthy demand tailwinds from cables and wires segment and Lloyd operating leverage to drive margin. JP Morgan has assigned neutral rating at ₹1,700 and Jefferies assigned hold at ₹1,800.
The home appliances and electrical goods maker on Tuesday reported a 15.73 per cent increase in consolidated net profit to ₹517 crore for the March quarter. Revenue from operations surged 20.24 per cent to ₹6,543.56 crore in the March quarter comparedd to ₹5,442.02 crore in the corresponding period of the last fiscal year.
Its total expenses were up 20.18 per cent to ₹5,911.39 crore in the March quarter.
For FY 25, consolidated net profit was up 15.7 per cent to ₹1,470.24 crore against ₹1,270.76 crore in FY24.
Published on April 23, 2025
