Near-term demand uncertainty for Havells likely to weigh on sentiment

Havells may have managed to post a better-than-expected performance for the quarter ended June 30 (Q1), but near-term uncertainties on demand are likely to weigh on its stock valuations. The stock has lost almost 4 per cent since last Monday, when its Q1 results were declared.

Though revenues declined 45 per cent year-on-year (YoY) to Rs 1,479 crore, there was a better-than-expected rebound in June sales, which pushed top line ahead of consensus estimate of Rs 1,302 crore. June saw sales grow 4 per cent YoY, against a 40 per cent decline in May. Higher-than-expected revenues helped Havells post an