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Business News/ Markets / Stock Markets/  Havells India share price hits 52-week high after Goldman Sachs upgrades rating to 'buy'
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Havells India share price hits 52-week high after Goldman Sachs upgrades rating to 'buy'

Goldman Sachs has also raised the price target for Havells to ₹1,660 from ₹1,540, indicating an upside potential of 17 percent from the previous session's closing price.

Havells IndiaPremium
Havells India

Shares of Havells India Limited surged by 4 percent, reaching a 52-week high of 1,482. This notable increase came after Goldman Sachs upgraded the rating for the wires and cables manufacturer from "neutral" to "buy." 

Alongside the rating upgrade, the global brokerage also raised the price target for Havells to 1,660 from 1,540, indicating an upside potential of 17 percent from the previous session's closing price.

Also read: Shriram Finance share price tanks 7% ahead of investors meet

Positive sentiments surround Havells' cost-control strategies, particularly its decision to internalize outsourcing processes within its manufacturing facilities. The company's commitment to investing in branding and human resources, even amidst economic downturns, is lauded by analysts.

Goldman Sachs predicts a resurgence in Havells' revenue growth, expecting double-digit figures starting from the March quarter, following two consecutive quarters of single-digit growth. The anticipated boost in margin contributions from the Lloyd brand is poised to bolster profitability, subsequently driving an uptick in valuation.

The brokerage views cost control measures positively, particularly initiatives like transitioning outsourcing to in-house manufacturing and consistent investments in brands and personnel, even amidst a downturn.

Also read: Citi initiates coverage on Mamaearth with 'buy', sees 26% upside – 7 key reasons why

During the December quarter, Havells reported a modest 1.4 percent year-on-year (YoY) increase in net profit, reaching 287.9 crore, while revenue surged by 6.8 percent to 4,400.6 crore.

As of 11:20 am, the stock was trading at 1,424, marking a 2.2 percent increase from the previous close on the NSE. Over the last three months, the stock has recorded a commendable gain of 12.5 percent.

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Published: 27 Feb 2024, 04:34 PM IST
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