NSEI:HAVELLS

Stock Analysis Report

Executive Summary

Havells India Limited, a fast moving electrical goods company, manufactures, sells, and exports industrial and consumer electrical products in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Havells India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAVELLS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

HAVELLS

-1.1%

IN Electrical

-0.3%

IN Market


1 Year Return

-2.5%

HAVELLS

-23.4%

IN Electrical

3.8%

IN Market

Return vs Industry: HAVELLS exceeded the Indian Electrical industry which returned -23.4% over the past year.

Return vs Market: HAVELLS underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

HAVELLSIndustryMarket
7 Day-3.7%-1.1%-0.3%
30 Day-3.2%1.7%1.6%
90 Day-1.5%7.4%7.6%
1 Year-1.9%-2.5%-21.4%-23.4%5.9%3.8%
3 Year118.8%114.3%10.5%6.8%35.4%28.5%
5 Year127.9%116.8%-7.2%-12.1%38.1%25.2%

Price Volatility Vs. Market

How volatile is Havells India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Havells India undervalued compared to its fair value and its price relative to the market?

55.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HAVELLS (₹667.35) is trading above our estimate of fair value (₹174.99)

Significantly Below Fair Value: HAVELLS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HAVELLS is poor value based on its PE Ratio (55.5x) compared to the Electrical industry average (14.2x).

PE vs Market: HAVELLS is poor value based on its PE Ratio (55.5x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: HAVELLS is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: HAVELLS is overvalued based on its PB Ratio (9.8x) compared to the IN Electrical industry average (0.8x).


Next Steps

Future Growth

How is Havells India forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAVELLS's forecast earnings growth (20% per year) is above the savings rate (7.6%).

Earnings vs Market: HAVELLS's earnings (20% per year) are forecast to grow faster than the Indian market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HAVELLS's revenue (12.8% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: HAVELLS's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAVELLS's Return on Equity is forecast to be high in 3 years time (21.6%)


Next Steps

Past Performance

How has Havells India performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAVELLS has a high level of non-cash earnings.

Growing Profit Margin: HAVELLS's current net profit margins (7.3%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: HAVELLS's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: HAVELLS's earnings growth over the past year (2.8%) is below its 5-year average (10.2% per year).

Earnings vs Industry: HAVELLS earnings growth over the past year (2.8%) underperformed the Electrical industry 13.7%.


Return on Equity

High ROE: HAVELLS's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Havells India's financial position?


Financial Position Analysis

Short Term Liabilities: HAVELLS's short term assets (₹32.2B) exceeds its short term liabilities (₹21.0B)

Long Term Liabilities: HAVELLS's short term assets (₹32.2B) exceeds its long term liabilities (4.8B)


Debt to Equity History and Analysis

Debt Level: HAVELLS's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: HAVELLS's debt to equity ratio has reduced from 48.5% to 0.3% over the past 5 years.

Debt Coverage: HAVELLS's debt is well covered by operating cash flow (3907.9%).

Interest Coverage: HAVELLS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HAVELLS has a high level of physical assets or inventory.

Debt Coverage by Assets: HAVELLS's debt is covered by short term assets (assets are 238.8x debt).


Next Steps

Dividend

What is Havells India's current dividend yield, its reliability and sustainability?

0.67%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.4%industryaverage2.4%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: HAVELLS's dividend (0.67%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: HAVELLS's dividend (0.67%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

Stable Dividend: HAVELLS's dividend payments have been volatile in the past 10 years.

Growing Dividend: HAVELLS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.4%), HAVELLS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAVELLS's dividends in 3 years are forecast to be well covered by earnings (38.9% payout ratio).


Next Steps

Management

What is the CEO of Havells India's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Anil Gupta (50yo)

5yrs

Tenure

₹201,934,000

Compensation

Mr. Anil Rai Gupta has been an Executive Chairman and Managing Director of Havells India Limited since November 13, 2014 and serves as its CEO. Mr. Gupta has 23 years of experience in strategizing marketin ...


CEO Compensation Analysis

Compensation vs Market: Anil's total compensation ($USD2.82M) is above average for companies of similar size in the Indian market ($USD1.22M).

Compensation vs Earnings: Anil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HAVELLS's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: HAVELLS's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: HAVELLS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,875,00027 Sep 19
Ajay Mehrotra
EntityIndividual
Shares2,500
Max Price₹750.00
Sell₹1,536,20029 Dec 18
Brijendra Misra
EntityIndividual
Shares2,227
Max Price₹689.81
Sell₹1,419,23721 Dec 18
P. Sajimon
EntityIndividual
Shares2,000
Max Price₹709.62

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Anil Gupta (50yo)

    Executive Chairman & MD

    • Tenure: 5yrs
    • Compensation: ₹201.93m
  • Ameet Gupta (47yo)

    Executive Whole-Time Director

    • Tenure: 4.8yrs
    • Compensation: ₹80.75m
  • Rajesh Gupta (62yo)

    Director of Finance

    • Tenure: 9.2yrs
    • Compensation: ₹108.24m
  • Sanjay Gupta

    VP, Compliance Officer & Company Secretary

    • Tenure: 10.1yrs
    • Compensation: ₹5.10m
  • Siddhartha Pandit (51yo)

    Head of Legal & Wholetime Director

    • Tenure: 0.5yrs
  • Rajiv Goel (48yo)

    Executive President

    • Tenure: 0yrs
  • Sachin Gupta (51yo)

    Senior VP & Chief Information Officer

    • Tenure: 3.8yrs
  • Amit Tiwari

    Vice President of Marketing

    • Tenure: 2.3yrs
  • Anil Sharma

    Head of Corporate Communications

    • Tenure: 0yrs
  • Mukul Saxena

    Executive VP & CTO

    • Tenure: 1.4yrs

Board Members

  • Vellayan Subbiah (50yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹1.39m
  • Surjit Gupta (77yo)

    Non-Independent Non-Executive Director

    • Tenure: 36.3yrs
  • Anil Gupta (50yo)

    Executive Chairman & MD

    • Tenure: 5yrs
    • Compensation: ₹201.93m
  • Ameet Gupta (47yo)

    Executive Whole-Time Director

    • Tenure: 4.8yrs
    • Compensation: ₹80.75m
  • Rajesh Gupta (62yo)

    Director of Finance

    • Tenure: 9.2yrs
    • Compensation: ₹108.24m
  • Surender Tuteja (74yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: ₹1.84m
  • Vijay Chopra (73yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: ₹1.66m
  • Adarsh Kishore (73yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: ₹1.51m
  • Siddhartha Pandit (51yo)

    Head of Legal & Wholetime Director

    • Tenure: 0.5yrs
  • Pratima Ram (69yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹1.60m

Company Information

Havells India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Havells India Limited
  • Ticker: HAVELLS
  • Exchange: NSEI
  • Founded: 1958
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹421.071b
  • Shares outstanding: 625.80m
  • Website: https://www.havells.com

Location

  • Havells India Limited
  • QRG Towers
  • 2D, Express way
  • Noida
  • Uttar Pradesh
  • 201304
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517354BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2001
HAVELLSNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2001

Biography

Havells India Limited, a fast moving electrical goods company, manufactures, sells, and exports industrial and consumer electrical products in India and internationally. It operates through five segments:  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 12:52
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.