Analysts believe recovery in business would be slower for Havells India as compared to peers' due to higher exposure to real estate/industrial products and higher share of premium products
Analysts expect profits to reach FY19 levels only next fiscal
This will make it tough for many of them to service their fixed costs, such salary and wages, as well as interest on their loan.
The company now boasts of 20 products in the water purifier business segment
The deterioration in economic macros, sectoral liquidity challenges and slowdown in infrastructure segment has disproportionately impacted demand for industrial cables and industrial switchgear.
Valuation of 34x FY21 earnings does not capture whole picture
Higher competitive intensity in LED panels impacted growth of the acquired Lloyd's business, which slipped into losses at the operating level
Stock recommendation by Religare Broking
Nifty outlook and stock recommendation by Sacchitanand Uttekar, DVP - Technical (Equity)
Growth moderates in cables, lighting; poor show in switchgear and Lloyd business
The company had logged a net profit of Rs 211.16 crore in the April-June period a year ago, according to a regulatory filing
The stock gained 6% to Rs 720, trading close to its all-time high level of Rs 729 touched September 3, 2018 in intra-day trade.
High raw material prices, weak rupee and lag effect to pass on increased costs weighs margins
Lloyd had a muted quarter owing to adverse season, channel inventory and forex headwinds
Strong show in core operations, traction in Lloyd's business can drive 20-25 per cent annual growth in earnings in next two years
In last three months, the stock outperformed the market and gained 17% against 1.5% rise in Sensex till Monday
The acquisition has been executed at an enterprise value of Rs 1,600 cr
Deal marks its entry into air-conditioners, washing machines space
Havells India, on the other hand, is trading 0.7% lower at Rs 423 levels
Transaction to take about 8 weeks to conclude; will mark former's entry into ACs, washing machines