Demand risks likely to keep Havells India stock under pressure

The company also faces margin headwinds due to rise in raw material costs

The stock of the country’s largest fast moving electrical goods maker, Havells India fell 9.5 per cent in trade over the last couple of trading sessions. In addition to the market selloff, margin pressures in the December quarter (Q3FY22), impact of future price hikes on demand and weak position of Lloyd led to the dip.

The key disappointment in the quarter was the 400 basis points y-o-y drop in operating profit margins to 12.1 per cent as compared to estimates which pegged the same 200 basis points higher. The pressure on margins, which was felt across segments, was on