CLSA has maintained its outperform rating on Havells India with a target price of ₹1,670 per share, citing a resilient third-quarter performance supported by strong momentum in wires and cables.
The brokerage said Havells reported a 21% year-on-year rise in EBITDAwhile revenue grew 14% YoYdriven largely by sustained strength in the wires and cables segment. CLSA noted that this performance reflects gradual improvement in demand conditions, even as broader inflationary pressures persist across the consumption landscape.
CLSA highlighted that demand recovery is progressing steadily, though inflation remains a concern for discretionary categories. In this context, pricing discipline and cost management remain critical for sustaining margins over the next few quarters.
The brokerage expects inventory normalisation at Lloyd to be largely completed by Marchwhich could help stabilise performance in the appliances segment. Additionally, CLSA expects price hikes of 5–10% across select categories to offset the impact of BEE norm changes, inflation and currency depreciation.
Overall, CLSA believes Havells is well positioned to navigate near-term challenges through its strong execution in core segments and calibrated pricing strategy, supporting its continued outperform stance.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
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