Havells India Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹1,13,325 crore, PE ratio of 81.5, debt-to-equity ratio of 0.04 and return on equity of 18.0%. These figures reflect the company’s financial health and current market valuation.
Content:
- Havells India Ltd Overview
- Havells India Financial Results
- Havells India Financial Analysis
- Havells India Company Metrics
- Havells India Stock Performance
- Havells India Peer Comparison
- Havells India Shareholding Pattern
- Havells India History
- How To Invest In Havells India Ltd Share?
- Havells India Limited Fundamental Analysis – FAQs
Havells India Ltd Overview
Havells India Ltd is a leading electrical equipment manufacturer in India, known for its extensive product range including lighting, wiring devices and home appliances. The company boasts strong financial health, reflected in its high market capitalization and robust profitability metrics.
The company has a market capitalization of ₹1,13,325 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 9.01% below its 52-week high and 46.6% above its 52-week low.
Havells India Financial Results
Havells India reported FY24 sales of ₹18,590 crore, up from ₹13,938 crore in FY22. Operating profit margin decreased from 13% in FY22 to 10% in FY24.
- Revenue Trend: Sales grew from ₹13,938 crore in FY22 to ₹18,590 crore in FY24, indicating a robust upward trend. The increase reflects strong market performance despite rising expenses.
- Equity and Liabilities: Expenses rose from ₹12,178 crore in FY22 to ₹16,747 crore in FY24, while operating profit margin declined. This shift shows growing costs impacting profitability.
- Profitability: Operating profit declined from ₹1,760 crore in FY22 to ₹1,843 crore in FY24. Despite a lower OPM% in FY24, EBITDA increased, showing improved operational efficiency.
- Earnings Per Share (EPS): EPS increased from ₹19.11 in FY22 to ₹20.28 in FY24. This growth demonstrates strong earnings performance and shareholder value despite rising expenses.
- Return on Net Worth (RoNW): Net profit was ₹1,271 crore in FY24, up from ₹1,196 crore in FY22. The steady rise in net profit highlights improved profitability and efficient capital utilization.
- Financial Position: The dividend payout increased from 39.25% in FY22 to 44.38% in FY24, reflecting a commitment to return value to shareholders amid growing profits.
Havells India Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 18,590 | 16,911 | 13,938 |
| Expenses | 16,747 | 15,312 | 12,178 |
| Operating Profit | 1,843 | 1,599 | 1,760 |
| OPM % | 10 | 9 | 13 |
| Other Income | 248.96 | 177.71 | 160.44 |
| EBITDA | 2,092 | 1,777 | 1,921 |
| Interest | 45.71 | 33.62 | 53.41 |
| Depreciation | 338.5 | 296.17 | 260.89 |
| Profit Before Tax | 1,707 | 1,447 | 1,607 |
| Tax % | 25.57 | 25.94 | 25.53 |
| Net Profit | 1,271 | 1,072 | 1,196 |
| EPS | 20.28 | 17.11 | 19.11 |
| Dividend Payout % | 44.38 | 43.83 | 39.25 |
*All values in ₹ Crore
Havells India Company Metrics
Havells India Ltd exhibits strong financial metrics with a market cap of ₹1,13,325 crore and a current stock price of ₹1,808. It shows a P/E ratio of 81.5, an ROE of 18%, and a dividend yield of 0.50%, reflecting robust financial health and investor returns.
- Market Cap: Havells India Ltd market capitalization stands at ₹1,13,325 crore, underscoring its significant presence and valuation in the market. This large market cap reflects investor confidence and the company’s substantial influence within the electrical equipment sector.
- Book Value: The book value of Havells India Ltd is ₹119 per share, indicating the company’s net asset value per share. This metric provides insight into the intrinsic value and financial stability of the company.
- Face Value: Havells India Ltd has a face value of ₹1.00 per share. This nominal value is used for accounting purposes and is crucial for calculating various financial metrics, including the company’s overall valuation.
- Turnover: The company’s asset turnover ratio is 1.58, indicating efficient use of assets to generate revenue. This ratio reflects Havells India’s capability to leverage its assets effectively to drive sales and operational efficiency.
- PE Ratio: Havells India Ltd’s P/E ratio is 81.5, highlighting a high valuation relative to its earnings. This suggests that investors expect significant future growth or are willing to pay a premium for the company’s current earnings.
- Debt: Havells India Ltd has a low debt level of ₹303 crore, reflecting conservative leverage and financial prudence. The minimal debt contributes to the company’s strong balance sheet and low financial risk.
- ROE: The return on equity (ROE) for Havells India Ltd is 18.0%, demonstrating the company’s effective use of shareholders’ equity to generate profits. This strong ROE indicates solid financial performance and investor value creation.
- EBITDA Margin: Havells India Ltd’s EBITDA margin stands at 10.3%, reflecting the company’s operational efficiency and profitability. This margin indicates the proportion of revenue retained after covering operating expenses, showcasing financial health.
- Dividend Yield: The dividend yield for Havells India Ltd is 0.50%, providing investors with a modest return on their investment through dividends. This yield reflects the company’s commitment to sharing profits with shareholders while maintaining growth.
Havells India Stock Performance
The table shows Havells India Ltd’s return on investment (ROI) over different periods: 23% over 5 years, 13% over 3 years, and 42% over the past year. These figures indicate strong recent performance and solid long-term growth.
| Period | Return on Investment (%) |
| 5 Years | 23% |
| 3 Years | 13% |
| 1 Year | 42% |
Example:
If an investor invested ₹1,00,000 in Havells India Ltd five years ago, their investment would have grown to ₹1,23,000, reflecting a 23% ROI.
Over three years, a ₹1,00,000 investment would have yielded ₹1,13,000, showing a 13% ROI.
For the past year, an investment of ₹1,00,000 would have increased to ₹1,42,000, representing a 42% ROI.
Havells India Peer Comparison
Havells India, with a market cap of ₹115,722.96 crore, has a PEG ratio of 8.47. Despite a modest 3-month return of 3.84%, its 1-year return of 44.7% demonstrates strong growth, outperforming many competitors.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Havells India | 1845.95 | 115722.96 | 8.47 | 3.84 | 44.7 |
| 2 | Crompton Gr. Con | 428.55 | 27588.94 | 31.88 | 26.38 | 42.68 |
| 3 | Wonder Electric. | 1493.55 | 1998.98 | 16.84 | 59.68 | 537.32 |
Havells India Shareholding Pattern
Havells India Ltd maintains a stable promoter stake of around 59.41%, while foreign institutional investors (FIIs) hold approximately 25.33%. Domestic institutional investors (DIIs) hold around 9.55%, and retail investors account for about 5.7%. These figures indicate balanced ownership and stable investor confidence compared to competitors.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 59.41 | 59.43 | 59.43 | 59.43 |
| FII | 25.33 | 24.83 | 23.96 | 24.19 |
| DII | 9.55 | 9.88 | 10.11 | 9.48 |
| Retail & others | 5.7 | 5.85 | 6.49 | 6.9 |
*All values in %
Havells India History
Havells India Ltd. began as Havell’s Pvt. Ltd. in 1983, focusing on miniature circuit-breakers. It transitioned to a public company in 1992 and expanded its product line through technical collaborations and acquisitions, including cable manufacturing and electrical consumer goods.
In the early 2000s, Havells India acquired several companies and introduced new products. They enhanced manufacturing capacities for switchgear and lighting fixtures, and entered new segments, such as compact fluorescent lamps and domestic appliances, boosting their market presence.
From 2010 onwards, Havells India continued to innovate with acquisitions and new ventures, including the Lloyd Consumer Durable Business and collaborations with international firms. They expanded into personal grooming and automation, solidifying their position in the consumer durables industry.
How To Invest In Havells India Ltd Share?
Investing in Havells India Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Havells India Ltd shares and place your buy order.
Havells India Limited Fundamental Analysis – FAQs
Havells India Ltd’s fundamental analysis shows a market capitalization of ₹1,13,325 crore, a PE ratio of 81.5, a low debt-to-equity ratio of 0.04, and a return on equity of 18.0%, indicating strong financial health and valuation.
The market cap of Havells India Ltd as of August 13, 2024, is approximately ₹1,13,325 crore. This value reflects the company’s strong market position in the Indian consumer electronics industry.
Havells India Limited is a major consumer electrical and power distribution equipment manufacturer, offering a wide range of products including circuit breakers, cables, motors, fans, lighting solutions and domestic appliances for various applications.
Havells India Ltd. is led by Anil Rai Gupta, the Chairman and Managing Director. The company is publicly traded, so ownership is distributed among individual and institutional shareholders, with significant stakes held by the Gupta family and institutional investors.
The main shareholders of Havells India Ltd. include promoters with around 59% ownership, foreign institutional investors (FIIs) holding approximately 25%, domestic institutional investors (DIIs) at around 9.5% and retail investors with about 5.7%.
Havells India operates in the consumer electrical and power distribution equipment industry. It manufactures a diverse range of products including circuit breakers, cables, motors, fans, lighting solutions and domestic appliances for industrial, commercial and residential applications.
To invest in Havells India Ltd shares, open a brokerage account, research the company’s financials and market trends, and then place a buy order through your broker. Monitor your investment and stay informed about company updates and market conditions.
Determining if Havells India is overvalued or undervalued requires analyzing its valuation metrics like P/E ratio, earnings growth and market conditions. Compare these with industry peers and historical data to assess if the current share price reflects its true value.
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