Havells gets an upgrade from Goldman Sachs and its highest price target
Goldman Sachs is anticipating Havells to return to revenue growth in the teens starting the March quarter, after two quarters of single digit growth.
Brokerage firm Goldman Sachs has upgraded wires and cables manufacturer Havells India Ltd. to a "buy" rating compared to the "neutral" recommendation it had earlier.
The brokerage has also raised its price target on Havells to ₹1,660 from ₹1,540 earlier. This is the highest price target for Havells on the street. The revised price target implies a potential upside of 17% from Monday's closing levels.
Goldman believes that Havells is well placed for a revival in growth courtesy of its market leadership and increased distribution.
Cost control initiatives such as shifting outsourcing to its own manufacturing and continued investments in brands and people even during a down cycle is a positive, according to the brokerage.
Goldman Sachs is anticipating Havells to return to revenue growth in the teens starting the March quarter, after two quarters of single digit growth.
This, along with improvement in margin contribution from the Lloyd brand, should give better visibility on future profitability, which will drive up valuation going forward.
Out of the 44 analysts that track Havells India, 28 have a "buy" recommendation on the stock, while 12 say "hold." Four analysts have a "sell" recommendation on the stock.
Shares of Havells India ended little changed on Monday but have risen 8% over the last one month.
(Edited by : Hormaz Fatakia)
First Published: Feb 27, 2024 8:50 AM IST
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