ICICIdirect.com has recommended hold rating on Havells India with a target price of Rs 1137, in its research report dated July 29, 2014.
"Havells India (HIL) reported 21.5% YoY growth in standalone revenues to Rs 1277 crore on strong growth in cables & electronic consumer durables (ECD) segment, which recorded revenue growth of ~32% and ~21% YoY, respectively, largely due to lower base. Revenue from switchgear & lighting segments increased ~11% and ~12% YoY, respectively. EBITDA margins remained at 12.7% as raw material cost (as percentage of sales) witnessed a ~200 bps YoY increase, which was neutralised by 198 bps savings in purchase of traded goods. In spite of a sharp increase in tax rate (from 18% in Q1FY14 to 28% in Q1FY15), PAT increased ~13% YoY to Rs 107.3 crore driven by EBITDA growth of 21.5% YoY and sharp increase in other income. Sylvania revenues remained flat at €107.2 million during Q1FY15 with operating margins increasing 140 bps YoY to 4.3% after the €0.9 million provisioned for pension liabilities. It posted a profit of €0.3 million during Q1FY15 as against a loss of €0.8 million in Q1FY14."
"HIL is a leading FMEG player in the switchgear segment with a presence in three product categories, namely domestic, modular and LV industrial switchgear. HIL's switchgear segment is largely dominated by the domestic MCB segment that contributes ~26% to standalone revenues. HIL recorded revenue CAGR of 17% in FY12-14 largely on account of a new product launch, a gradual shift in branded product categories and sustained demand from rural markets. Havells has a leadership position in the domestic switchgear market and increased its market share aggressively from 15% in 2006 to 29% in FY14. HIL has focused on de-risking the Sylvania business by shifting the target market towards emerging economies like LatAm and Asia from developed European markets. Sylvania's performance has remained muted due to bleak macro conditions in the European region. Lower operating leverage in the absence of flattish volume growth across the European region hit operating margin significantly. The company managed to reduce its total debt notably from €151 million in FY11 to €86.5 million in FY14 after infusion of equity by Havells India and settlement with Osram."
"At the CMP, the stock is trading at a PE multiple of 28.9x FY15E earnings and 24x FY16E earnings. We have used sum of the parts (SOTP) method to value HIL. We have valued the standalone business at 22x FY16 EPS and Sylvania's business at 6x FY16 EV/EBITDA and arrived at a target price of Rs 1137. We expect Sylvania to continue to remain profitable at the operating level for FY15E and FY16E, respectively," says ICICIdirect.com research report.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Anda sedang membaca artikel tentang
Hold Havells India; target of Rs 1137: ICICIdirect
Dengan url
https://untukkesehatanda.blogspot.com/2014/07/hold-havells-india-target-of-rs-1137.html?m=0
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Hold Havells India; target of Rs 1137: ICICIdirect
namun jangan lupa untuk meletakkan link
Hold Havells India; target of Rs 1137: ICICIdirect
sebagai sumbernya
0 komentar:
Posting Komentar