Hope of demand recovery drives gains for Havells' stock

Margin performance will be an additional trigger going ahead

After a sharp 23 per cent correction since the start of the year, the stock of India’s largest fast moving electrical goods (FMEG) maker has made a smart recovery. The Havells India scrip is up 16 per cent since mid-March on expectations of demand recovery and attractive valuations. Amid multiple challenges for the FMEG space, brokerages are betting on market leaders which are either dominating their categories or are competitively positioned. Havell’s (top three position across most categories barring air conditioners) has seen the highest earnings upgrades for FY23 across larger companies in this space. 

Say Amit Mahawar and Angad