Result Update: Havells India Ltd (HIL) - SELL - TP Rs.460 - Kotak

HIL reported Q4FY17 result in line with our estimates driven by strong YY growth in switchgear, consumer appliances and cables division. Operating margins contracted YoY due to partial continuation of dealer incentives to counter demonetization and increased employee expense.

We roll forward our target price on FY19; value HIL stock at 30x FY19 estimated earnings (33x FY18 earnings earlier) and owing to the downside to our target price (stock outperformed significantly in past few trading sessions) move recommendation to 'SELL' from 'Accumulate' with revised price target of Rs 460 (Rs 418 earlier).

Shares of HAVELLS INDIA LTD. was last trading in BSE at Rs.513.95 as compared to the previous close of Rs. 501.05. The total number of shares traded during the day was 634669 in over 12565 trades.

The stock hit an intraday high of Rs. 525.4 and intraday low of 499. The net turnover during the day was Rs. 325996248.

Source : Equity Bulls

Keywords