Does The Data Make Havells India Limited (NSE:HAVELLS) An Attractive Investment?

I’ve been keeping an eye on Havells India Limited (NSE:HAVELLS) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe HAVELLS has a lot to offer. Basically, it is a financially-healthy company with an impressive history and a buoyant future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Havells India here.

Flawless balance sheet with solid track record and pays a dividend

In the previous year, HAVELLS has ramped up its bottom line by 40%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, HAVELLS also outperformed its industry, which delivered a growth of 17%. This is an notable feat for the company.

NSEI:HAVELLS Future Profit October 14th 18
NSEI:HAVELLS Future Profit October 14th 18

HAVELLS’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. HAVELLS seems to have put its debt to good use, generating operating cash levels of 9.53x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NSEI:HAVELLS Historical Debt October 14th 18
NSEI:HAVELLS Historical Debt October 14th 18

Next Steps:

For Havells India, I’ve put together three pertinent aspects you should look at:

  1. Valuation: What is HAVELLS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HAVELLS is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does HAVELLS return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from HAVELLS as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HAVELLS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.