Buy Havells India - Emkay

Reco: BUY
CMP: Rs 482
Target Price: Rs 520

Strong show continues, Retain BUY

- Standalone results beats estimates - revenues grew 26% yoy to Rs9 bn led by Lighting & ECD segment; EBIDTA margins jumps 130bps to 14% & APAT at Rs789 mn, up 21% yoy

- Sylvania declines 4% yoy, but strong profit growth continues. Normalised EBIDTA margin at 8.6% vs 5.1% in Q3FY11

- Revised EBIDTA margins assumptions upwards by 40bps and 50bps in FY12E and FY13E, thereby revise earnings by 6.7% (Rs29.2/Share) and 7% (Rs36.1/Share) for FY12E and FY13E

- Rising dealer network and new product launches continues to drive domestic growth; Sylvania continues to surprise positively on margins. Maintain Buy with TP of Rs520/Share.

Source : Equity Bulls

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