Havells India Ltd shares jumped on January 20 despite the company reporting a marginal drop in net profit in the December quarter.
The home appliance maker’s profit fell to Rs 283 crore from Rs 288 crore a year ago in the quarter ended December 31.
Havells’ revenue from operations rose nearly 11% to Rs 4,883 crore, while total expenses rose 12.3% to Rs 4,564 crore.
Havells India shares were trading 1.5% higher at Rs 1,598 per share at 1:35 pm on January 20.
This performance reflected strong demand from its switchgear project business, but it suffered inventory de-stocking in wires during the third quarter.
Margins were impacted by poor product mix, as well as price erosion in the lighting segment. Lloyd performed well, narrowed losses, but the stock is trading at a high valuation of 58 times FY26 earnings.
Havells India subsidiary Lloyd performed strongly, narrowing its losses. However, analysts have raised concerns over the stock’s valuation. Currently trading at a high of 58 times FY26 earnings, Havells has seen its target price revised by Motilal Oswal Financial Services, Nomura and Nuvama following its earnings miss.
Nomura cut its target price to Rs 1,943 per share from Rs 1,990, but upgraded its rating on the stock to ‘Buy’ from ‘Neutral’. The brokerage expects growth momentum to pick up, with Havells India growth excluding the Lloyd segment expected to recover to 17-18 per cent during FY26 and FY27.
The company’s growth is expected to be driven by new capacities in cables, stable demand in wires and premiumisation trend in electric cables.
