Shares of Havells India Ltd. gained as much as 2% on Thursday, October 1, following brokerage firm Citi's reiteration of its positive stance on the stock. According to reports from CNBC TV18, Citi maintained its 'buy' rating on Havells India with a price target of ₹1,525 per share, indicating an upside of 50% from its previous close. The brokerage also opened a 30-day positive catalyst watch on the wires and cables manufacturer. As per latest market data, Havells India was quoting at ₹1,038.00, up ₹22.80, or 2.25%, having touched an intraday high of ₹1,038.00 and an intraday low of ₹1,018.95. The stock was trading with volumes of 105,567 shares, compared to its five-day average of 105,945 shares, showing a decrease of 0.36% in trading volume.
Following the recent correction in Havells' stock price, the risk reward has turned favourable for investors, according to the Citi note. As reported by CNBC TV18, the stock had declined 18% in September, marking its worst month since October 2024. Despite the recent gains, shares of Havells India are trading 2.2% lower on Thursday at ₹1,038.6 and are down 27% so far this year. The latest trading data confirms this trend, with the stock showing volatility within the current trading range.
According to the Citi note reported by CNBC TV18, Havells India's growth trajectory can see an improvement given the continued strength in the wires and cables business, and a recovery in the consumer-facing segments. The brokerage projected that this, coupled with a better margin profile, is estimated to lead to 21% revenue growth and 28% growth in its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) in the September quarter, compared to the same quarter last year. Citi believes profit growth could continue to outpace revenue growth in the medium term as well, with margin improvement supported by operating leverage in ECD/cables & wires and lower Lloyd losses. The latest analysis reinforces this positive outlook for the company's operational efficiency.
Of the 40 analysts who have coverage on the Havells India stock, 28 have a 'buy' rating while eight have a 'hold' rating and four have a 'sell' rating, as reported by CNBC TV18. Havells reported its first quarter results in July, with its net profit declining 15.4% to ₹289 crore from ₹352 crore, while revenue increased 19.8% to ₹6,6140 crore from ₹5,437 crore. Its EBITDA declined 8.8% to ₹474 crore and margins contracted to 7.3% from 9.6% in the year-ago period.
