Havells India Q1 Review - Likely Market Shares Gains Across Segments: ICICI Securities
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ICICI Securities Report
Havells India Ltd. reported stronger Q1 FY22 than consensus estimates.
In-spite of steep inflationary pressures, the company was able to improve gross margin by 90 basis points YoY due to:
better revenue mix,
selective price hikes across segments and
cost saving initiatives.
The company has gained market shares in most segments (our view) as its price hikes were relatively lower than unorganised/ smaller players.
Ahead, we model recovery in revenues/ profitability of Lloyd which was impacted due to lockdown in key summer season.
We model Havells India to report profit after tax compound annual growth rate of 19.3% over FY21-FY23E with:
strong volume growth,
price hikes in high single digits and
benefits of cost saving initiatives and recovery in Lloyd.
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