Havells India has received an accumulate rating from Prabhudas Lilladher with a target price of ₹1,634, unchanged from the previous recommendation. The brokerage's research report highlighted the company's moderate growth performance in Q3FY26, driven primarily by strong momentum in the wires and cables segment.

Segment Performance Analysis

The wires and cables segment emerged as the key growth driver, registering a robust 32.8% growth during the quarter. This performance was supported by growth in cables and volume expansion across the segment. The company maintained its market share across key categories while likely gaining share in lighting products.

Electrical Consumer Durables Outlook

The electrical consumer durables segment witnessed strong demand for heating products, aided by favorable winter conditions. However, the company continues to work on normalizing channel inventory for cooling products. Management expects old inventory in room air conditioners and fans to be cleared over the coming quarters, with complete clearance anticipated by May 2026.

The company is considering a price hike of approximately 5.00-10.00% in room air conditioners during Q4FY26, which will be offset by GST-related price reductions.

Capital Expenditure and Expansion Plans

Havells has outlined significant expansion plans with a guided capital expenditure of approximately ₹10.00 billion for FY27. The capex allocation includes:

• New research and development center
• Wires and cables segment expansion
• Ongoing investments at Sri City facility for room air conditioners and other white goods

The Sri City facility investments remain primarily focused on the domestic market, while the company continues to evaluate potential export opportunities.

Financial Projections and Valuation

Prabhudas Lilladher has projected strong growth trajectories across key business segments for the FY25-28E period. The brokerage estimates overall revenue, EBITDA, and PAT CAGR of 11.90%, 12.70%, and 13.20% respectively.

The target price of ₹1,634 is based on discounted cash flow valuation, which implies 48x FY28E earnings. The brokerage maintains its accumulate recommendation, citing the company's strong market position and growth prospects across key segments.

Havells India's stock experienced a notable decline on Tuesday, January 20, as shares of the consumer electrical goods manufacturer fell over 4.5% following the release of its Q3 results. The market reaction suggests investor concerns about the company's quarterly performance.

Market Performance

The stock's decline represents a significant single-day movement for Havells India, reflecting the market's immediate response to the Q3 financial results. The consumer electrical goods sector often sees heightened volatility around earnings announcements, and Havells India's performance on January 20 exemplifies this trend.

Q3 Results Impact

The timing of the stock decline coincided directly with the announcement of Havells India's Q3 results, indicating that investors were responding to the quarterly financial data. Consumer electrical goods companies typically face scrutiny during earnings season as investors assess performance metrics and market positioning.

Investor Sentiment

The over 4.5% decline in share price demonstrates the market's immediate reaction to the Q3 results announcement. Such significant single-day movements often reflect investor reassessment of the company's near-term prospects based on quarterly performance indicators.