Havells India Q2 Review - Strong Demand Outlook Despite Inflationary Environment: Prabhudas Lilladher

"BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Havells India Ltd. reported sustained momentum in demand despite inflationary environment. Price hikes are likely given raw material volatility; margins seem to have bottomed out.We increase our FY22-FY24 earnings estimate by 2-4% given resilient demand momentum despite an inflationary environment given robust festive season build-up strong housing segment demand healthy traction in industrial and infrastructure portfoliosustained gains at unorganised sector’s expense Although, HAVL negatively surprised with gross margin compression, however, we believe margins have bottomed out given strong demand outlook, improving mix and calibrated price increase.We expect HAVL to benefit from demand uptick in both consumer and industrial/infra (25% of sales) portfolio given 1) Diverse product portfolio covering 70%+ of household electric sockets 2) Amongst top 3 players in most product categories (except Lloyd) 3) Lloyd portfolio gaining traction4) Focus on innovation and expansion of distribution reach .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Havells India Q2 Review - Strong Demand Outlook Despite Inflationary Environment: Prabhudas Lilladher