Havells India nears record high

The stock moved higher by 3% to Rs 342, is currently trading near to its record high of Rs 346 on the BSE.

Havells India has moved higher by 3% to Rs 342 on the BSE in otherwise range bound market. The stock is currently trading near to its record high of Rs 346 touched on December 2014 on the BSE in intra-day trade.

An electrical consumer production and power distribution equipment manufacturer has outperformed the market by gaining 8% in past four trading sessions following an upgrade of its bank facilities by CARE Ratings. The S&P BSE Sensex was down nearly 1% during the same period.

Havells India on April 5, said CARE has upgraded its rating on long-term bank facilities to CARE AAA from CARE AA+. Instruments with AAA rating have the highest degree of safety for timely servicing of financial obligations and carry lowest credit risk. CARE, however, retained its rating of A1+ on its short-term loan, implying very high degree of safety.

According to Emkay Global Financial Services, traction in electrical consumer durables (ECD) and LED lighting is likely to drive 9.2% year-on-year (yoy) revenue growth to Rs 1,500 crore for the quarter ended March 2016.

Comments of green shoots in industrial & project activity should aid volume momentum in cables & wires. Expect cables & wires to grow by 7% yoy, ECD (15%), lighting & fixtures (11%) and switchgear 7%).

“Earnings before interest, taxes, depreciation and amortization (EBITDA) to be at Rs 200 crore, 11.3% yoy and EBITDA margins to improve 20 basis points yoy at 13.6% due to lower inputs and mix. Net profit to grow by 15.5% yoy to Rs 140 crore aided by higher other income,” Emkay Global said in a Q4FY16 results preview.

The counter has seen huge trading volumes with a combined 1.73 million shares changed hands on the BSE and NSE till 12:09 pm.