Havells Crosses 1 Lakh Crore Market Cap Ahead of Earnings

The Indian benchmark indices opened the final trading session of the week in the red. Both the Nifty and Sensex are down by 0.29% each, indicating a cautious end to the trading week. However, there’s a silver lining in the broader market performance as the Nifty Midcap and Nifty Small-Cap are trading higher by 0.77% and 0.66%, respectively, showing resilience amid broader market pressures.

Havells India Surges to New Highs

Amidst the market’s overall decline, Havells India Ltd. emerged as a standout performer. The stock jumped nearly 5%, setting a new 52-week high of Rs 1,652.70. This robust move led to Havells India reaching a significant milestone: crossing the 1 lakh crore mark in market capitalization. Havells India is a major Fast Moving Electrical Goods (FMEG) company and a leading power distribution equipment manufacturer with a significant global presence.

Overview of Havells India’s Product Line

Havells India has a strong market presence across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, and Luminaires for Domestic, Commercial, and Industrial Applications. This diversified product portfolio contributes to the company’s robust market position.

Q3FY24: A Mixed Performance

In Q3FY24, Havells India experienced slower growth due to subdued consumer demand, offsetting the strong performance in business-to-business categories. While all business-to-consumer segments showed low single-digit growth, business-to-business categories like cables and professional lighting continued to see strong traction, driven by infrastructure demand. The gross margins improved thanks to stable commodity prices, but higher advertising and promotional spending led to lower EBITDA margins.

Summer and Lloyd’s New AC Models

Havells India owns the appliances brand Lloyd, which launched a new line of premium air conditioner models in March. This launch coincided with the onset of hotter summers and the rising disposable incomes of consumers seeking a better lifestyle. Lloyd offers over 120 models for the domestic market, reflecting the company’s expanded production capacities.

Stock Performance: A Steady Climb

Havells India’s stock has shown a consistent upward trend, with a 19.40% gain since the beginning of 2024. In the past three months, the stock rose by 26.32%, while over the last 12 months, it has surged by 33.56%. This consistent performance has made Havells India an attractive option for investors.

Upcoming Earnings Announcement

Havells India is set to announce its Q4FY24 and fiscal year earnings for the year ended 31 March 2024 on Tuesday. The earnings conference call is scheduled for April 30, 2024, at 5:50 PM. This announcement is eagerly awaited by market participants to gauge the company’s financial health and future outlook.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.