Havells India (HVEL.BO): Growth Improving, Margins to Follow; Upgrade to Buy

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Havells India (HVEL.BO): Growth Improving, Margins to Follow; Upgrade to Buy

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30 Jun 2026 15:14:26 ET │ 13 pages

Havells India (HVEL.BO)

Growth Improving, Margins to Follow; Upgrade to Buy

CITI'S TAKE

We upgrade Havells to Buy from Neutral with TP of Rs1,500 (unchanged) as

the stock correction has created a favorable entry point into a high-quality

electricals/consumer durables franchise. Near-term Lloyd margin Buy ↑ from Neutral

weakness remains a monitorable, but Cables & Wires strength, improving Price (30 Jun 26 15:30) Rs1,153.30

price-cost pass-through, rational competition outside Lloyd, fading

Target price Rs1,500.00Lighting deflation, and emerging operating leverage should drive better

earnings visibility over FY27–29E. We expect Havells growth to improve in Expected share price return 30.1%

FY27E led by strong growth in Cables & Wires, gradual recovery in consumer Expected dividend yield 0.9%

businesses (Lloyd, ECD, Lighting, Switches, etc.) and solar segment

Expected total return 30.9%emerging as a meaningful growth driver within the other segment. Margins

should also benefit from operating leverage in ECD and Cables & Wires Market Cap Rs723,767M

bundled with moderation in losses for Lloyd. Risks: Inflationary trend in key US$7,673M

RM, increased competitive intensity in Cables & Wires and slowdown in

consumer businesses.

Growth outlook improving; Cables & Wires remains the anchor while Solar to add Price Performance

new engine — Cables & Wires continues to be Havells’ strongest growth engine,

(RIC: HVEL.BO, BB: HAVL IN)supported by both price and volume growth. Power cables growth continues to

outpace wires, and the company has doubled Cables & Wires capacity since FY25,

including capacity to be commissioned over the next six months.