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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 517354 | NSE: HAVELLS

Havells India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:36 am

Market Cap 1,21,516 Cr.
Current Price 1,938
High / Low2,106/1,233
Stock P/E87.4
Book Value 119
Dividend Yield0.46 %
ROCE24.4 %
ROE18.0 %
Face Value 1.00
PEG Ratio7.58

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Havells India Ltd

Competitors of Havells India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Elin Electronics Ltd 1,176 Cr. 237282/12973.4 1010.00 %5.08 %2.75 % 5.00
CWD Ltd 288 Cr. 7981,144/532250 79.10.00 %7.92 %4.56 % 10.0
Calcom Vision Ltd 170 Cr. 125199/104 55.40.00 %6.43 %1.83 % 10.0
Whirlpool of India Ltd 30,017 Cr. 2,3672,415/1,186100 2910.21 %9.07 %6.36 % 10.0
Voltas Ltd 59,197 Cr. 1,7891,946/807131 1760.31 %8.51 %4.40 % 1.00
Industry Average26,594.75 Cr2,073.48102.02118.820.16%15.91%13.79%6.00

All Competitor Stocks of Havells India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales2,6103,2383,6644,4264,2443,6794,1284,8594,8343,9004,4145,4425,806
Expenses2,2552,7933,2243,9063,8833,3933,7044,3324,4323,5273,9814,8075,234
Operating Profit355445440520362287424527402373433635572
OPM %14%14%12%12%9%8%10%11%8%10%10%12%10%
Other Income34334944484440476552567677
Interest111112191077108910189
Depreciation62626671727275777681889392
Profit before tax317405411474327252381487382335391599549
Tax %26%25%26%26%26%26%26%26%25%26%26%25%26%
Net Profit236302306352243187284358287249288447408
EPS in Rs3.764.834.885.633.882.984.535.714.583.974.597.136.51

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales7,1358,0518,4687,5946,1308,11610,0739,44010,45713,93816,91118,590
Expenses6,4617,2747,7136,7985,3157,0838,8858,3748,86812,16315,29016,747
Operating Profit6747777557968151,0331,1891,0671,5891,7751,6211,843
OPM %9%10%9%10%13%13%12%11%15%13%10%10%
Other Income22235489494297124107187159178249
Interest12310296911325165190675546
Depreciation110116139134121140149218249261296338
Profit before tax6645945691,5207239651,1479041,4381,6071,4471,707
Tax %12%25%32%14%32%31%31%19%27%26%26%26%
Net Profit5814463851,3004946617887351,0441,1961,0721,271
EPS in Rs9.327.156.1720.827.9110.6012.5911.7516.6819.1017.1120.28
Dividend Payout %16%42%49%29%44%4%36%34%39%39%44%44%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-23.24%-13.68%237.66%-62.00%33.81%19.21%-6.73%42.04%14.56%-10.37%18.56%
Change in YoY Net Profit Growth (%)0.00%9.56%251.34%-299.66%95.81%-14.59%-25.94%48.77%-27.48%-24.93%28.93%

Havells India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:13%
3 Years:21%
TTM:12%
Compounded Profit Growth
10 Years:11%
5 Years:10%
3 Years:8%
TTM:25%
Stock Price CAGR
10 Years:22%
5 Years:24%
3 Years:11%
1 Year:40%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:19%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital626262626263636363636363
Reserves1,3801,6041,7562,9653,2143,6674,1354,2495,1145,9406,5637,384
Borrowings9821,0544241342081159472521616223303
Other Liabilities2,0342,6132,5461,2251,6832,7632,8562,6903,1553,9044,3094,683
Total Liabilities4,4585,3324,7884,3875,1686,6087,1487,0738,85210,52311,15712,433
Fixed Assets1,5001,6001,5411,2241,3002,8192,9043,3503,2903,4343,6213,988
CWIP254438201224233869057166299
Investments00018916200030642620120
Other Assets2,9333,6883,2092,9543,6943,7654,0123,6385,1666,6067,1708,126
Total Assets4,4585,3324,7884,3875,1686,6087,1487,0738,85210,52311,15712,433

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 6388689635137671,1005018276601,7285651,953
Cash from Investing Activity -144-376-485-121-220-946185-548-763-75931-1,618
Cash from Financing Activity -252-310-754-621-98-409-318-716190-547-907-534
Net Cash Flow242183-277-229450-255368-43787421-311-199

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-308.00776.00331.00662.00607.00-114.00-93.00-71.00-520.00-615.00-222.00-302.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days44452711141515920202123
Inventory Days1161211037099124115121153119119102
Days Payable8298794266125949293958581
Cash Conversion Cycle786951394614363979445544
Working Capital Days3116-314-17-0125112613
ROCE %26%27%27%28%25%27%29%22%30%27%22%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters59.47%59.47%59.47%59.47%59.45%59.45%59.45%59.45%59.43%59.43%59.43%59.43%
FIIs24.01%26.76%26.51%24.44%23.10%23.30%22.60%23.11%23.79%24.19%23.96%24.83%
DIIs8.17%6.12%6.26%8.15%8.95%9.70%10.40%10.27%9.68%9.38%10.00%9.77%
Government0.12%0.11%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.11%0.11%
Public8.17%7.54%7.66%7.83%8.35%7.43%7.43%7.05%6.95%6.90%6.49%5.85%
Others0.05%0.01%0.01%0.01%0.04%0.01%0.01%0.01%0.03%0.00%0.00%0.00%
No. of Shareholders2,21,9381,89,9912,16,4132,56,0932,44,0142,36,3602,49,6802,39,6862,25,2552,24,2082,31,5402,24,428

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
UTI Flexi Cap Fund2,154,2321.48358.461,380,0002024-10-0956.1%
HDFC Top 100 Fund - Regular Plan1,819,8500.91302.821,380,0002024-10-0931.87%
SBI Flexi Cap Fund1,380,0001.1229.631,380,0002024-10-090%
ICICI Prudential Focused Equity Fund1,303,1982.75216.851,380,0002024-10-09-5.57%
Mirae Asset Large Cap Fund1,141,1860.5189.891,380,0002024-10-09-17.31%
UTI Large Cap Fund1,125,0001.5187.21,380,0002024-10-09-18.48%
Invesco India Contra Fund683,3560.77113.711,380,0002024-10-09-50.48%
Aditya Birla Sun Life Flexi Cap Fund680,0000.55113.151,380,0002024-10-09-50.72%
ICICI Prudential Nifty Next 50 Index Fund634,1752.15105.531,380,0002024-10-09-54.05%
DSP Flexi Cap Fund612,6210.98101.941,380,0002024-10-09-55.61%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)20.2817.1119.1116.6811.76
Diluted EPS (Rs.)20.2817.1119.1016.6811.76
Cash EPS (Rs.)25.6821.8323.2720.6615.23
Book Value[Excl.RevalReserv]/Share (Rs.)118.82105.7595.8582.6968.90
Book Value[Incl.RevalReserv]/Share (Rs.)118.82105.7595.8582.6968.90
Revenue From Operations / Share (Rs.)296.63269.92222.55167.05150.85
PBDIT / Share (Rs.)33.3728.3630.6728.1018.25
PBIT / Share (Rs.)27.9723.6326.5024.1314.77
PBT / Share (Rs.)27.2423.1025.6522.9614.45
Net Profit / Share (Rs.)20.2817.1119.1016.6811.75
NP After MI And SOA / Share (Rs.)20.2817.1119.1016.6811.75
PBDIT Margin (%)11.2510.5013.7816.8212.09
PBIT Margin (%)9.438.7511.9014.449.78
PBT Margin (%)9.188.5511.5213.749.57
Net Profit Margin (%)6.836.338.589.987.78
NP After MI And SOA Margin (%)6.836.338.589.987.78
Return on Networth / Equity (%)17.0616.1719.9320.1717.05
Return on Capital Employeed (%)21.5120.2224.0924.8619.46
Return On Assets (%)10.229.6011.3611.7910.39
Long Term Debt / Equity (X)0.000.000.040.070.00
Total Debt / Equity (X)0.000.000.060.090.00
Asset Turnover Ratio (%)1.581.561.431.311.33
Current Ratio (X)1.841.841.821.921.50
Quick Ratio (X)1.050.871.000.970.69
Inventory Turnover Ratio (X)2.772.792.782.402.32
Dividend Payout Ratio (NP) (%)36.9843.8415.7017.9872.33
Dividend Payout Ratio (CP) (%)29.2034.3512.8914.5255.79
Earning Retention Ratio (%)63.0256.1684.3082.0227.67
Cash Earning Retention Ratio (%)70.8065.6587.1185.4844.21
Interest Coverage Ratio (X)45.7652.8535.9624.2057.91
Interest Coverage Ratio (Post Tax) (X)28.8032.8823.4015.3738.30
Enterprise Value (Cr.)91897.4872586.2270119.4464563.1528896.48
EV / Net Operating Revenue (X)4.944.295.036.173.06
EV / EBITDA (X)43.9440.8536.5036.7025.30
MarketCap / Net Operating Revenue (X)5.114.405.186.283.18
Retention Ratios (%)63.0156.1584.2982.0127.66
Price / BV (X)12.7511.2412.0412.706.96
Price / Net Operating Revenue (X)5.114.405.186.283.18
EarningsYield0.010.010.010.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Havells India Ltd as of October 11, 2024 is: ₹1,880.72

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, Havells India Ltd is Overvalued by 2.96% compared to the current share price ₹1,938.00

Intrinsic Value of Havells India Ltd as of October 11, 2024 is: ₹2,097.64

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, Havells India Ltd is Undervalued by 8.24% compared to the current share price ₹1,938.00

Last 5 Year EPS CAGR: 11.53%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.17%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 9.00, which is a positive sign.
  3. The company has higher reserves (3,997.58 cr) compared to borrowings (395.50 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (10.00 cr) and profit (368.75 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 49.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Havells India Ltd:
    1. Net Profit Margin: 6.83%
      • 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: 21.51% (Industry Average ROCE: 15.91%)
      • 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. ROE%: 17.06% (Industry Average ROE: 13.79%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 28.8
      • 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.
    5. Quick Ratio: 1.05
      • 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.
    6. Stock P/E: 87.4 (Industry average Stock P/E: 85.02)
      • 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.
    7. Total Debt / Equity: 0
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

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
Consumer Electronics904, 9th Floor, New Delhi Delhi 110001investors@havells.com
http://www.havells.com
Management
NamePosition Held
Mr. Anil Rai GuptaChairman & Managing Director
Mr. Rajesh Kumar GuptaWholeTime Director & 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. Ashish Bharat RamIndependent Director
Ms. Namrata KaulIndependent Director
Mr. B Prasada RaoIndependent Director
Mr. Vivek MehraIndependent Director
Mr. Upendra Kumar SinhaIndependent Director
Mr. Jalaj Ashwin DaniIndependent Director
Mr. Subhash S MundraIndependent Director

FAQ

What is the latest fair value of Havells India Ltd?

The latest fair value of Havells India Ltd is ₹1880.72.

What is the Market Cap of Havells India Ltd?

The Market Cap of Havells India Ltd is 1,21,516 Cr..

What is the current Stock Price of Havells India Ltd as on 11 October 2024?

The current stock price of Havells India Ltd as on 11 October 2024 is ₹1,938.

What is the High / Low of Havells India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Havells India Ltd stocks is 2,106/1,233.

What is the Stock P/E of Havells India Ltd?

The Stock P/E of Havells India Ltd is 87.4.

What is the Book Value of Havells India Ltd?

The Book Value of Havells India Ltd is 119.

What is the Dividend Yield of Havells India Ltd?

The Dividend Yield of Havells India Ltd is 0.46 %.

What is the ROCE of Havells India Ltd?

The ROCE of Havells India Ltd is 24.4 %.

What is the ROE of Havells India Ltd?

The ROE of Havells India Ltd is 18.0 %.

What is the Face Value of Havells India Ltd?

The Face Value of Havells India Ltd is 1.00.

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