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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Havells India Ltd

About the Company - Havells India Ltd

Havells India Ltd. is a Public Limited Listed company incorporated on 08/08/1983 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L31900DL1983PLC016304 and registration number is 016304. Currently Company is involved in the business activities of Manufacture of other electronic and electric wires and cables. Company’s Total Operating Revenue is Rs. 13888.53 Cr. and Equity Capital is Rs. 62.63 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - General904, 9th Floor, Surya Kiran Building, New Delhi Delhi 110001investors@havells.com
http://www.havells.com
Management
NamePosition Held
Mr. Anil Rai GuptaChairman & Managing Director
Mr. Rajesh Kumar GuptaWhole-time Director (Finance) and Group CFO
Mr. Ameet Kumar GuptaWhole Time Director
Mr. Siddhartha PanditWhole Time Director
Mr. Surjit Kumar GuptaNon Exe.Non Ind.Director
Mr. Puneet BhatiaNon Exe.Non Ind.Director
Mr. T V Mohandas PaiNon Exe.Non Ind.Director
Mr. B Prasada RaoIndependent Director
Mr. Vivek MehraIndependent Director
Mr. Jalaj Ashwin DaniIndependent Director
Mr. Subhash S MundraIndependent Director
Mr. Upendra Kumar SinhaIndependent Director
Mr. Ashish Bharat RamIndependent Director
Ms. Namrata KaulIndependent Director

Havells India Ltd. Share Price Update

Share PriceValue
Today₹1,347.95
Previous Day₹1,349.65

Basic Stock Data of Havells India Ltd

Market Cap 88,820 Cr.
Current Price 1,417
High / Low1,472/1,128
Stock P/E75.1
Book Value 110
Dividend Yield0.54 %
ROCE22.3 %
ROE17.0 %
Face Value 1.00

Data Source: screener.in

Competitors of Havells India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
CG Power & Industrial Solutions Ltd 65,688 Cr. 430503/27776.4 14.60.35 %61.6 %66.0 % 2.00
HPL Electric & Power Ltd 2,392 Cr. 372399/74.158.1 1260.27 %8.85 %3.87 % 10.0
Schneider Electric Infrastructure Ltd 13,295 Cr. 556643/14661.1 9.230.00 %27.6 %1,195 % 2.00
Marine Electricals (India) Ltd 1,309 Cr. 101123/32.562.0 15.10.00 %16.0 %11.0 % 2.00
Servotech Power Systems Ltd 2,074 Cr. 97.6109/16.5149 4.150.04 %17.7 %16.8 % 1.00
Industry Average16.6 Cr311.3281.3233.820.13%26.35%19.73%3.4

Havells India Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales3,1753,3392,6103,2383,6644,4264,2443,6794,1284,8594,8343,9004,414
Expenses2,6652,8312,2552,7933,2243,9063,8833,3933,7044,3324,4323,5273,981
Operating Profit510508355445440520362287424527402373433
OPM %16%15%14%14%12%12%9%8%10%11%8%10%10%
Other Income39373433494448444047655256
Interest1524111112191077108910
Depreciation64656262667172727577768188
Profit before tax470456317405411474327252381487382335391
Tax %25%33%26%25%26%26%26%26%26%26%25%26%26%
Net Profit350304236302306352243187284358287249288
EPS in Rs5.594.853.764.834.885.633.882.984.535.714.583.974.59

Havells India Ltd Quarterly Chart

Havells India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,4527,1358,0518,4687,5946,1308,11610,0739,44010,45713,93816,91117,721
Expenses5,7786,4617,2747,7136,7985,3157,0838,8858,3748,86812,16315,29015,995
Operating Profit6746747777557968151,0331,1891,0671,5891,7751,6211,726
OPM %10%9%10%9%10%13%13%12%11%15%13%10%10%
Other Income2522235489494297124107187159178204
Interest12812310296911325165190675535
Depreciation95110116139134121140149218249261296309
Profit before tax4766645945691,5207239651,1479041,4381,6071,4471,585
Tax %22%12%25%32%14%32%31%31%19%27%26%26%
Net Profit3705814463851,3004946617887351,0441,1961,0721,178
EPS in Rs5.939.327.156.1720.827.9110.6012.5911.7516.6819.1017.1118.79
Dividend Payout %22%16%42%49%29%44%4%36%34%39%39%44%

Havells India Ltd Profit & Loss Yearly Chart

Havells India Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:16%
3 Years:21%
TTM:9%
Compounded Profit Growth
10 Years:10%
5 Years:10%
3 Years:13%
TTM:11%
Stock Price CAGR
10 Years:24%
5 Years:12%
3 Years:6%
1 Year:12%
Return on Equity
10 Years:20%
5 Years:19%
3 Years:20%
Last Year:17%

Havells India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital62626262626263636363636363
Reserves8931,3801,6041,7562,9653,2143,6674,1354,2495,1145,9406,5636,837
Borrowings1,0279821,0544241342081159472521616223268
Other Liabilities2,1932,0342,6132,5461,2251,6832,7632,8562,6903,1553,9044,3093,850
Total Liabilities4,1754,4585,3324,7884,3875,1686,6087,1487,0738,85210,52311,15711,018
Fixed Assets1,3911,5001,6001,5411,2241,3002,8192,9043,3503,2903,4343,6213,839
CWIP66254438201224233869057166143
Investments000018916200030642620120
Other Assets2,7182,9333,6883,2092,9543,6943,7654,0123,6385,1666,6067,1707,016
Total Assets4,1754,4585,3324,7884,3875,1686,6087,1487,0738,85210,52311,15711,018

Havells India Ltd Reserves and Borrowings Chart

Havells India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4526388689635137671,1005018276601,728565
Cash from Investing Activity -105-144-376-485-121-220-946185-548-763-75931
Cash from Financing Activity -247-252-310-754-621-98-409-318-716190-547-907
Net Cash Flow100242183-277-229450-255368-43787421-311

Havells India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days50444527111415159202021
Inventory Days1431161211037099124115121153119119
Days Payable11282987942661259492939585
Cash Conversion Cycle817869513946143639794455
Working Capital Days273116-314-17-01251126
ROCE %33%26%27%27%28%25%27%29%22%30%27%22%

Havells India Ltd Financial Efficiency Indicators Chart

Havells India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters59.50%59.47%59.47%59.47%59.47%59.45%59.45%59.45%59.45%59.43%59.43%59.43%
FIIs24.91%24.01%26.76%26.51%24.44%23.10%23.30%22.60%23.11%23.79%24.19%23.96%
DIIs7.89%8.17%6.12%6.26%8.15%8.95%9.70%10.40%10.27%9.68%9.38%10.00%
Government0.19%0.12%0.11%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.11%
Public7.51%8.17%7.54%7.66%7.83%8.35%7.43%7.43%7.05%6.95%6.90%6.49%
Others0.01%0.05%0.01%0.01%0.01%0.04%0.01%0.01%0.01%0.03%0.00%0.00%
No. of Shareholders1,58,5142,21,9381,89,9912,16,4132,56,0932,44,0142,36,3602,49,6802,39,6862,25,2552,24,2082,31,540

Havells India Ltd Shareholding Pattern Chart

No. of Havells India Ltd Shareholders

Havells India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
UTI Flexi Cap Fund25521721.3332.46
Mirae Asset Large Cap Fund24123720.87314.25
SBI Flexi Cap Fund13800000.96179.77
ICICI Prudential Focused Equity Fund11363992.42148.03
UTI Large Cap Fund11250001.26146.55
Nippon India ETF Nifty Next 50 Junior BeES6282162.1385.94
DSP Flexi Cap Fund6126210.8479.8
ICICI Prudential Nifty Next 50 Index Fund5727672.2774.61
SBI Arbitrage Opportunities Fund5515000.371.84
ICICI Prudential Equity - Arbitrage Fund5140000.4266.96

Havells India Ltd ROCE Trend

Havells India Ltd EPS Trend

Havells India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)17.1119.1116.6811.7612.56
Diluted EPS (Rs.)17.1119.1016.6811.7612.56
Cash EPS (Rs.)21.8323.2720.6615.2315.00
Book Value[Excl.RevalReserv]/Share (Rs.)105.7595.8582.6968.9067.43
Book Value[Incl.RevalReserv]/Share (Rs.)105.7595.8582.6968.9067.43
Revenue From Operations / Share (Rs.)269.92222.55167.05150.85161.05
PBDIT / Share (Rs.)28.3630.6728.1018.2520.99
PBIT / Share (Rs.)23.6326.5024.1314.7718.55
PBT / Share (Rs.)23.1025.6522.9614.4518.29
Net Profit / Share (Rs.)17.1119.1016.6811.7512.56
NP After MI And SOA / Share (Rs.)17.1119.1016.6811.7512.57
PBDIT Margin (%)10.5013.7816.8212.0913.03
PBIT Margin (%)8.7511.9014.449.7811.51
PBT Margin (%)8.5511.5213.749.5711.35
Net Profit Margin (%)6.338.589.987.787.79
NP After MI And SOA Margin (%)6.338.589.987.787.80
Return on Networth / Equity (%)16.1719.9320.1717.0518.63
Return on Capital Employeed (%)20.2224.0924.8619.4625.04
Return On Assets (%)9.6011.3611.7910.3910.95
Long Term Debt / Equity (X)0.000.040.070.000.01
Total Debt / Equity (X)0.000.060.090.000.01
Asset Turnover Ratio (%)1.561.431.311.331.46
Current Ratio (X)1.841.821.921.501.51
Quick Ratio (X)0.871.000.970.690.75
Inventory Turnover Ratio (X)2.792.782.402.322.54
Dividend Payout Ratio (NP) (%)43.8415.7017.9872.3331.83
Dividend Payout Ratio (CP) (%)34.3512.8914.5255.7926.65
Earning Retention Ratio (%)56.1684.3082.0227.6768.17
Cash Earning Retention Ratio (%)65.6587.1185.4844.2173.35
Interest Coverage Ratio (X)52.8535.9624.2057.9180.80
Interest Coverage Ratio (Post Tax) (X)32.8823.4015.3738.3049.36
Enterprise Value (Cr.)72586.2270119.4464563.1528896.4846952.05
EV / Net Operating Revenue (X)4.295.036.173.064.66
EV / EBITDA (X)40.8536.5036.7025.3035.76
MarketCap / Net Operating Revenue (X)4.405.186.283.184.79
Retention Ratios (%)56.1584.2982.0127.6668.16
Price / BV (X)11.2412.0412.706.9611.43
Price / Net Operating Revenue (X)4.405.186.283.184.79
EarningsYield0.010.010.010.020.01

Havells India Ltd Profitability Ratios (%)

Havells India Ltd Liquidity Ratios

Havells India Ltd Liquidity Ratios (%)

Havells India Ltd Interest Coverage Ratios (X)

Havells India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Havells India Ltd

Fair Value: ₹1411.95

The stock is overvalued by 0.36% compared to the current price ₹1417

*Investments are subject to market risks

Strength and Weakness of Havells India Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 26.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 10.17, which is a positive sign.
  3. The company has higher reserves (3,716.69 cr) compared to borrowings (441.38 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (9.62 cr) and profit (377.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 21.52 and average Dividend Yield of 11.28%.
  2. The stock has a high average Cash Conversion Cycle of 52.58, which may not be favorable.

Should I Buy Havells India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Havells India Ltd:
    1. Net Profit Margin: 6.33%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.22% (Industry Average ROCE: 10.27%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 32.88
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.87
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 75.1 (Industry average Stock P/E: 90.12)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Havells India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE