 "Stock Alert: Havells India m-cap tops Rs 1-trillion mark; stock rallies 4%")
Havells India joined the elite group of companies having market capitalisation (market cap) of Rs 1 trillion after the company's shares hit a record high of Rs 1,627, surging 4 per cent on the BSE in Friday's intraday trade.
The stock of the consumer electronics company surpassed its previous high of Rs 1,590.90, touched on March 2. In the past three months, it has surged 27 per cent, as compared to a 5 per cent rise in the S&P BSE Sensex.
At 10:12 am, Havells India was trading 3 per cent higher at Rs 1,612.25 with a market cap of Rs 1.01 trillion, BSE data shows. Average trading volume on the counter more-than-doubled with a combined 2.1 million equity shares changing hands on the NSE and BSE till the time of writing of this report. The benchmark index, however, was down 0.15 per cent at 74,225.
Havells India's has been outperforming the market in anticipation of better January-March quarter (Q4) demand for fans and air-conditioners (ACs).
Havells India Ltd is a leading FMEG (fast moving electrical goods) and a consumer durable company, with a presence across 60 countries. Its product range includes Industrial & Domestic electrical goods and consumer durables. Havells owns prestigious brands like Havells, Lloyd, Crabtree, Standard and Reo.
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The board of directors of Havells India is scheduled to meet on April 30, 2024 to consider and approve the financial results for the quarter and financial year ended March 31, 2024.
Last month, Lloyd, a leading consumer durables brand from Havells India, announced its vision to bolster its 'Make in India' strategy by launching its industry-first designer Lloyd Stellar & Stylus air conditioner range, alongside industry-leading refrigerators equipped with Rapid Cool Technology capable of producing ice in just 29 minutes.
There's a noticeable shift towards investing more in home aesthetics, with more consumers desiring to infuse their living spaces with both cutting-edge technology as well as superior design. This evolution in consumer behaviour illuminates a burgeoning demand for designer air conditioners that not only complement the interior decor but also deliver a top-notch cooling performance, the management said.
With growth in infrastructure in areas of residential, commercial and industrial, the consumption of electrical goods has increased in exponential ratios. This growth has fuelled the rise of FMEG sector in India with global and domestic players intensely involved to grab market shares.
Also, rural demand could outgrow the demand from urban markets on the back of rising rural incomes and government initiatives taken in relation to rural electrification. There has also been an increasing trend in demand for façade lighting.
Long-term demand prospects for the industry remain favourable supported by growing working population, higher disposable income, easier access to credit and improving standard of living, according to analysts.
"The near-term earnings outlook remains robust on account of seasonal factors and a better product mix. Further, input prices have stabilised, which is expected to keep margins stable. However, we don't have meaningful Ebitda margins in the very short term, given that Havells India is in an investment mode. Despite earnings downgrades, the earnings outlook remains robust," analysts at Geojit Financial Services had said in their December quarter result update.
