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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 517354 | NSE: HAVELLS

Fundamental Analysis of Havells India Ltd

Share Price and Basic Stock Data

Last Updated: June 19, 2024, 2:55 pm

Market Cap 1,14,113 Cr.
Current Price 1,821
High / Low1,987/1,233
Stock P/E90.4
Book Value 119
Dividend Yield0.48 %
ROCE24.4 %
ROE18.0 %
Face Value 1.00
PEG Ratio7.84

Competitors of Havells India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HPL Electric & Power Ltd 2,812 Cr. 437462/10864.6 1290.23 %11.0 %5.37 % 10.0
BPL Ltd 512 Cr. 105128/58.238.0 51.00.00 %7.09 %5.54 % 10.0
Dixon Technologies (India) Ltd 61,429 Cr. 10,26910,340/3,953167 2830.03 %28.7 %24.7 % 2.00
Symphony Ltd 8,549 Cr. 1,2401,241/82057.2 1090.40 %19.0 %18.3 % 2.00
Calcom Vision Ltd 192 Cr. 143205/118146 56.60.00 %6.48 %1.89 % 10.0
Industry Average14,596.70 Cr1,625.66100.38119.170.13%17.11%15.03%6.60

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

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%

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 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:23%
5 Years:14%
3 Years:14%
1 Year:22%
Return on Equity
10 Years:20%
5 Years:19%
3 Years:20%
Last Year:17%

Last Updated: April 6, 2024, 5:47 am

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

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

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

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%

Financial Efficiency Indicators Chart

Havells India Ltd 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 Fund2,154,2321.48358.46680,0002024-06-18216.8%
HDFC Top 100 Fund - Regular Plan1,819,8500.91302.82680,0002024-06-18167.63%
SBI Flexi Cap Fund1,380,0001.1229.63680,0002024-06-18102.94%
ICICI Prudential Focused Equity Fund1,303,1982.75216.85680,0002024-06-1891.65%
Mirae Asset Large Cap Fund1,141,1860.5189.89680,0002024-06-1867.82%
UTI Large Cap Fund1,125,0001.5187.2680,0002024-06-1865.44%
Invesco India Contra Fund683,3560.77113.71680,0002024-06-180.49%
Aditya Birla Sun Life Flexi Cap Fund680,0000.55113.15680,0002024-06-180%
ICICI Prudential Nifty Next 50 Index Fund634,1752.15105.53680,0002024-06-18-6.74%
DSP Flexi Cap Fund612,6210.98101.94680,0002024-06-18-9.91%

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) (%)0.0043.8415.7017.9872.33
Dividend Payout Ratio (CP) (%)0.0034.3512.8914.5255.79
Earning Retention Ratio (%)0.0056.1684.3082.0227.67
Cash Earning Retention Ratio (%)0.0065.6587.1185.4844.21
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 (%)0.0056.1584.2982.0127.66
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: 1,945.66

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.

Undervalued: 6.85% compared to the current price 1821

Intrinsic Value: 2,170.07

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 19.17% compared to the current price ₹1821

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 24.17%, 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: %)
      • 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: %)
      • 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): 28.80
      • 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: 90.4 (Industry average Stock P/E: )
      • 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: 0.00
      • 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 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

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest fair value of Havells India Ltd?

The latest fair value of Havells India Ltd is ₹1945.66.

What is the Market Cap of Havells India Ltd?

The Market Cap of Havells India Ltd is 1,14,113 Cr..

What is the current Stock Price of Havells India Ltd as on 19 June 2024?

The current stock price of Havells India Ltd as on 19 June 2024 is ₹1,821.

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 1,987/1,233.

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

The Stock P/E of Havells India Ltd is 90.4.

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 0.48 %.

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