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 Analysis

Flawless balance sheet second-rate dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

HAVELLS

-1.1%

IN Electrical

-3.9%

IN Market


1 Year Return

-37.9%

HAVELLS

-51.6%

IN Electrical

-32.2%

IN Market

Return vs Industry: HAVELLS exceeded the Indian Electrical industry which returned -52.2% over the past year.

Return vs Market: HAVELLS underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

HAVELLSIndustryMarket
7 Day-7.8%-1.1%-3.9%
30 Day-25.5%-30.0%-26.8%
90 Day-28.6%-37.2%-31.7%
1 Year-37.1%-37.9%-50.5%-51.6%-30.8%-32.2%
3 Year2.8%0.03%-47.6%-49.6%-19.5%-23.8%
5 Year70.6%61.2%-49.3%-51.8%-10.0%-14.9%

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?

38.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HAVELLS (₹484.6) is trading above our estimate of fair value (₹170.09)

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 (40x) compared to the Electrical industry average (10x).

PE vs Market: HAVELLS is poor value based on its PE Ratio (40x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: HAVELLS is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: HAVELLS is overvalued based on its PB Ratio (7.1x) compared to the IN Electrical industry average (0.5x).


Next Steps

Future Growth

How is Havells India forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAVELLS's forecast earnings growth (19% per year) is above the savings rate (6.5%).

Earnings vs Market: HAVELLS's earnings (19% per year) are forecast to grow slower than the Indian market (19.5% per year).

High Growth Earnings: HAVELLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: HAVELLS's revenue (15.3% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: HAVELLS's revenue (15.3% 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 low in 3 years time (19.7%).


Next Steps

Past Performance

How has Havells India performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAVELLS has high quality earnings.

Growing Profit Margin: HAVELLS's current net profit margins (7.6%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: HAVELLS's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: HAVELLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HAVELLS had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the Electrical industry average (9.6%).


Return on Equity

High ROE: HAVELLS's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Havells India's financial position?


Financial Position Analysis

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

Long Term Liabilities: HAVELLS's short term assets (₹32.2B) exceed 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 35.2% 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?

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HAVELLS's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.94%).

High Dividend: HAVELLS's dividend (0.93%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


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 (37.1%), 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 (33.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Anil Gupta (50yo)

5.42s

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. He served as an Investor Director of Jana Small Finance Bank  ...


CEO Compensation Analysis

Compensation vs Market: Anil's total compensation ($USD2.68M) is above average for companies of similar size in the Indian market ($USD713.52K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anil Gupta
Executive Chairman & MD5.42yrs₹201.93m12.38% 37.5b
Rajesh Gupta
Director of Finance9.58yrs₹108.24m0.14% 413.4m
Ameet Gupta
Executive Whole-Time Director5.25yrs₹80.75mno data
Rajiv Goel
Executive Presidentno datano datano data
Mukul Saxena
Executive VP & CTO1.83yrsno datano data
Sachin Gupta
Senior VP & Chief Information Officer4.17yrsno datano data
Sanjay Gupta
VP, Compliance Officer & Company Secretary10.5yrs₹5.10m0.00048% 1.5m
Siddhartha Pandit
Head of Legal & Wholetime Director0.92yrno datano data
Anil Sharma
Head of Corporate Communicationsno datano datano data
Amit Tiwari
Vice President of Marketing2.75yrsno datano data

5.0yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HAVELLS's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anil Gupta
Executive Chairman & MD5.42yrs₹201.93m12.38% 37.5b
Rajesh Gupta
Director of Finance9.58yrs₹108.24m0.14% 413.4m
Ameet Gupta
Executive Whole-Time Director5.25yrs₹80.75mno data
Siddhartha Pandit
Head of Legal & Wholetime Director0.92yrno datano data
T. V. Pai
Non-Independent Non-Executive Director5.33yrs₹1.24mno data
Vellayan Subbiah
Independent Directorno data₹1.39mno data
Jalaj Dani
Independent Director2.67yrs₹1.39mno data
Surjit Gupta
Non-Independent Non-Executive Director36.67yrsno datano data
Puneet Bhatia
Non-Independent Non-Executive Director5.33yrs₹1.18mno data
Pratima Ram
Independent Director5.75yrs₹1.60mno data

5.3yrs

Average Tenure

52yo

Average Age

Experienced Board: HAVELLS's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: ₹303.264b
  • 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: Switchgears, Cables, Lighting and Fixtures, Electrical Consumer Durables, and Lloyd Consumer. The company offers switches; switchgears, such as circuit breakers, energy savers, human safety equipment, distribution boards, surge protection products, and control and monitoring devices, as well as electrical wiring accessories, industrial motors, and capacitors; appliances, including cooking, food preparation, brewing, garment care, and climate control appliances; and cables consisting of domestic cables and industrial underground cables, as well flexible cables. It also provides fans comprising ceiling, table, pedestal, wall, ceiling mounting, personal, and domestic exhaust fans; lighting solutions; storage, instant, instantaneous gas, and solar water heaters; pumps, such as centrifugal, mono block, and submersible pumps; water purifiers; air conditioners; televisions; washing machines; air circulators; heavy duty exhaust fans; and air coolers. In addition, the company offers motors, including crane duty, smoke, brake, inverter duty, and energy efficient motors; reactive power solutions; and personal grooming products. Further, it provides lighting products, such as LED, industrial, and commercial luminaries; down lighters; landscape and area lighting products; lamps; home decor items; and spotlights, as well as LED strips, battens, COB, panels, etc. The company markets its products primarily under the Havells brand name. Havells India Limited was founded in 1958 and is headquartered in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:37
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.