Havells India Limited

Industrials — Electrical Equipment & Parts · NSE

₹1,121.00+₹4.90 (+0.44%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Havells India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Havells India Limited, a fast-moving electrical and electronic durables company, manufactures, trades in, and sells various consumer electrical and electronic products in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees7,598

Annual revenue₹22,288 Cr

How does it make money?

Turns over ₹22,288 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 7,598 employees supports ₹2.93 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.93 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.9% against a peer median of 19.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE19.1%

What is the outlook?

20 analysts covering the stock expect revenue to grow about 13.8% and earnings to grow about 21.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.8%

Est. earnings growth+21.2%

Analysts20

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +33% while net margin moved +19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+33%

Margin effect+19%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 43.5x is demanding — it needs sustained high growth to justify
✓ P/E is 42% below its own historical median of 75.4x — cheap by its own standards
✗ P/B of 7.44x is a steep premium to book

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

53/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

43.5x

3Y Median

75.4x

40 monthly readings · mean 72.2x · range 37.7x–111.5x

Sector Median

90.7x

median of 2 sector peers

🟢Current valuation is approximately 42% below its 3y median of 75.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 52% below the peer median of 90.7x.

vs. its own history

Cheap

75.4x median over 40 months · -42%

vs. sector peers

Cheap

90.7x median of 2 peers · -52%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.2x

PEG

2.65

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 22.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 2.80x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 42% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.80x. Interest is payable whether or not the business has a good year.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.9% CAGR
Latest reported year was 19.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹88 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹70,350 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

43.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.44x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹25.75

Profitable

Profitable on a per-share basis

ROE

17.9%

Strong

Strong capital efficiency

ROCE

22.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.80x

High

High leverage

Revenue Growth (YoY)

19.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-16.6%

Falling

Profits are shrinking

Dividend Yield

1.07%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹88 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

34.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.3%

Average

Average margins

Net Margin

6.9%

Average

Average bottom-line conversion

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1075.6 / 1161.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16,806 Cr	₹18,473 Cr	₹21,600 Cr	₹22,288 Cr	+9.9%
EBITDA	₹1,795 Cr	₹2,099 Cr	₹2,475 Cr	₹2,478 Cr	+11.3%
EBITDA Margin	10.7%	11.4%	11.5%	11.1%	—
PAT (Net Profit)	₹1,072 Cr	₹1,271 Cr	₹1,472 Cr	₹1,691 Cr	+16.4%
EPS	₹17.11	₹20.28	₹23.48	₹26.94	+16.3%
ROE	16.2%	17.1%	17.7%	17.9%	—
ROCE	20.2%	21.5%	22.5%	22.1%	—
Total Debt	₹223 Cr	₹303 Cr	₹319 Cr	₹265 Cr	+5.9%
Free Cash Flow	-₹23 Cr	₹1,167 Cr	₹757 Cr	₹88 Cr	—

🟢 Revenue has grown at 9.9% a year over 3 years.

🟢 EBITDA has grown at 11.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.1% over 3 years.

🟢 PAT (Net Profit) has grown at 16.4% a year over 3 years.

🟢 EPS has grown at 16.3% a year over 3 years.

🟢 ROE has risen from 16.2% to 17.9% over 3 years (+1.7 pts).

🟢 ROCE has risen from 20.2% to 22.1% over 3 years (+1.9 pts).

🔴 Total Debt has grown at 5.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹23 Cr to ₹88 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14,746 Cr

Total Liabilities

₹5,278 Cr

Cash & Equivalents

₹789 Cr

Operating Cash Flow

₹1,572 Cr

Capex

-₹1,484 Cr

Shareholding (proxy)

Institutional Holding

26.3%

Insider Holding

63.5%

Corporate Actions

Next Earnings

22 Oct 2026

Dividend Rate

₹12

Ex-Dividend Date

22 May 2026

Analyst Consensus

Recommendations

25 Buy · 7 Hold · 3 Sell

Target Price (Mean)

₹1,358.57

+21.2% vs CMP

Target Range

₹1,100 – ₹1,600

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed1 negative3 general

Havells India Ltd. Share Price Rise Streak and Valuation

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

HAVELLS Outlook for the Week

Equitypandit, 09 Oct

Top stocks to buy: Why experts suggest Tata Elxsi, Zensar Tech, Havells India | Check target, support, stop loss

Livemint, 15 Oct

HAVELLS Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Havells India (NSEI:HAVELLS) Stock Price

Simply Wall Street, 10 Oct

Havells India shares fall 6% on missing Q4 estimates, brokerages cut target prices

Moneycontrol.com, 23 AprAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑