Havells India Ltd | Electric Equipment Sector | 2019 Multibagger shares to invest in Indian Stock Market ~ Earning Folio Research & Investments

BSE: 517374
NSE: HAVELLS
ISIN: INE176B01034
SECTOR: Electric Equipment

Here is a detailed analysis of Havells India Ltd. You can read more below:

About the company

Havells India Limited is an FMEG (Fast Moving Electrical Goods ) Company and is basically a holding company. The Company is engaged in manufacturing Switchgears, Cable, Lighting and Fixtures, and Electric Consumer Durables. It has a simple strategy to acquire and grow, which is the key to its success.
It is ranked 11th ‘Most Respected Company’ out of the top 100 companies in India- Business World.

Major products

Consumer: Havells products for consumer ranges from lighting, switches, electrical circuitry and wiring to home & kitchen appliances, fans, air coolers, and water heaters.
Industrial: Havell offers a range of industrial electrical solutions from circuit protection and surge protection devices, reactive power solutions, HT & LT cables, induction motors, to professional lighting and heavy-duty fans etc.
Additional Products under brand LLoyd: Havells India acquired Lloyd brand in 2017 and now has additional products in its portfolio such as Air Conditioner, Washing Machine, LED Television, Chest Freezer.

Positive indicators

The company has consistently performed in the last 15 years with 29% CAGR growth in revenue and 32% CAGR growth in profit. It is a very good indication.
The recent acquisition of Lloyd is an indication that the company is looking to expand its business in high-growth consumer electrical appliances.

Opportunities

With the growth of the Indian middle class and government's focus on 100% electrification of Indian villages, the electric parts and equipment market is bound to grow at a fast pace.
Only 3% of Indian household is actively using high-end consumer appliances. With the growth in the Indian middle-class income, more Air Conditioner and home appliances will be used by Indian households.
Government is focusing on "housing for all" scheme and promoting more real estate activities. This will create demand for electrical switches, wires etc.

Risk

The economic slowdown and risk related to the real estate market can have an indirect impact on sales.
Due to non-brand awareness, price competition, and high input cost; penetration to B-Class cities and the rural area remains a challenge for all big brands.

The expected range of price

Share bought around INR 500-550 should be around INR 800-900 in the next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment advisor before investing. Please read the detailed disclaimer below.

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