In the year 1983, Havells India incorporated and has now become a leading manufacturer in the field of home, kitchen, and electrical appliances and goods.
If we converse about the company’s major stream, then below are the two segments that contribute the most. They are as follows:
Domestic Cables: Havells India has a specialization in manufacturing heat and fire-resistant cables for electric cabling and wiring. Moreover, the company is also engaged in the creation of LAN cables, CCTV cables, and speaker cables. Precisely, the domestic cables generally contribute 40 percent of the company’s revenue.
Switches & Switchgears: This segment contributes nearly 24 percent to the upper line of the company. Switches and switch gears are also sub-divided from an economy range to a premium range. Furthermore, Havells is also busy in manufacturing Distribution Boards which utilizes in managing and distributing domestic electricity.
This is not the end, the company has launched a personal grooming section through various showrooms physically and through the E-commerce route as well. Moreover, the company Havells India has now launched trimmers, hair straighteners, shavers, and dryers.
Moving ahead, let’s do some technical and fundamental analysis of the company.
Promoters Holding and FII Holding
As of 16 June 2022, 59.47 percent stake is held by the promoters. On the contrary, Mutual Fund ownerships and FII stood at 3.63 and 24.44 percent respectively.
The total market capitalization of Havells India Ltd put up at 68,677.81 crores during the time of blog writing.
Financial Key Indicators
For the quarter ending March, 2022, the company has submitted its quarterly results with consolidated net sales of Rs.4470.37 crore. Moreover, the consolidated net sales were up by 20.4 percent from the quarter submitted before.
Furthermore, the net profit mounted at Rs.352.48 crore for the recent quarter which was 16.01 up from the subsequent quarter past year.
Shareholding Pattern
As of 16 June, 2022, the promoters hold 59.47 percent stake in the company. Furthermore, FII and DII hold 24.44 percent and 8.25 percent simultaneously.
Evaluation Ratio
The stock is currently trading at a P/E multiple of 57.40 and a P/BV ratio of 11.44. Moreover, both were down from earlier. Precisely, if a P/E ratio is higher than that indicates investors are willing to pay a higher amount thereby expecting better growth opportunities. Furthermore, the P/BV ratio shows the company’s inherent value. Consequently, the price that investors are willing to pay for no growth.
Now, here if we look into the fundamentals then we can clearly say that there is a fall in P/E and P/BV ratio which seems not a healthy investment for investors.
Technical Analysis:
Havells India Ltd is forming a head and shoulder pattern. The company witnessed a good rally between 450 levels to 1500 levels. No offence, but covid-19 seems to be good time for Havells India.
But now the time has changed and fundamentals are becoming weak. The company is forming head and shoulder pattern thereby indicating a neckline support at 1040 levels.
Three consecutive closes and weekly close below 1040 will take Havells to 650 levels in the days ahead.
Traders who are holding positions in Havells may exit around the 1040 level thereby maintaining a stop loss below 1040. However, limiting the losses is the first and foremost principle of apt trading.
We may witness a sharp downside rally in Havells so we advise traders to be cautious at lower levels.
Positional Traders may sell the stock after beating the level of 1040. Moreover, a dead cat bounce between 1080—1130 levels seems to be a good selling opportunity for positional traders with a stop loss maintaining above 1325 levels on a closing basis. We may experience a downside target of around 650 levels.
Today, the share price of Havells India Ltd. Was down by 2.21 percent and ended at 1088.95.
Chart source- Investing.com