Mumbai: In its research report dated January 20, 2026, Prabhudas Lilladher has maintained an ‘Accumulate’ rating on Havells India, setting a target price of Rs 1,634.
The report highlights that Havells reported moderate growth in Q3 FY26, primarily driven by the Wiring & Cables (W&C) segment, which grew by 32.8%, supported by increased volumes and expansion in cables. The company maintained its market share across key categories and possibly gained share in lighting products.
In the Electrical Consumer Durables (ECD) segment, demand for heating products surged, aided by a favorable winter, while channel inventories for cooling products are gradually normalizing. The company expects to clear old inventory in RAC and fans over the coming quarters, likely before the summer season in May 2026. Additionally, Havells is contemplating a 5-10% price hike in RAC products in Q4 FY26, which will be offset by GST-related price reductions.
Capacity utilization stands at approximately 65-70% for wires and 90-100% for cables. Havells has guided for a capex of around Rs 10 billion in FY27, mainly for a new R&D center, W&C segment expansion, and ongoing investments at the Sri City facility for RAC and other white goods, focusing primarily on the domestic market. The company is also exploring potential export opportunities.
Financial projections estimate a revenue CAGR of 11.9%, EBITDA growth of 12.7%, and net profit growth of 13.2% over FY25-28. Revenue growth is expected across segments with 8.4% in ECD, 18.6% in cables, and 5.3% in Lloyd over the same period. The EBITDA margin is projected to reach 10% by FY28, a 20 basis points increase.
The valuation is based on a discounted cash flow (DCF) model, implying a valuation multiple of 48x FY28 earnings. Prabhudas Lilladher continues to recommend an ‘Accumulate’ stance on Havells India, maintaining the target price of Rs 1,634.
