Reco price/date: Rs 552/September 3
Current/target price: Rs 568.55/Rs 450
Antique Stock Broking
Reco price/date: Rs 550/September 3
Current/target price: Rs 555.25/Rs 680
The Havells India stock underperformed the Sensex by 6.0 per cent during the past three months. It is now trading at 12.1 times the 2013-14 estimated price/earnings ratio, which analysts believe is an attractive valuation. Analysts see steady growth in a tough operating environment, a strong balance sheet, improving free cash generation and a potential rise in the dividend payout as strong stock price drivers. JP Morgan thinks the recent guidance cut for Sylvania margins is priced in, and recent forex trends have become favourable. This could help alleviate concern on a further downside to Sylvania's margins. JP Morgan has raised its FY14 estimated earnings per share five per cent. Upgrade to 'Overweight' from 'Neutral'.