Havells India share price down 3% despite YoY rise in net profit; global brokerage retains sell
Havells India share price was trading lower by over 3 percent in the morning session on May 21, a day after the company declared its Q4 results.
The electrical goods major posted a 71 percent year-on-year (YoY) increase in its March quarter (Q4) consolidated net profit at Rs 303.83 crore.
The total income for Q4 was up 50.8 percent at Rs 3,375.87 crore. The company said in its investor presentation that Q4 sustained the growth momentum gained in Q3 with the highest quarterly sales.
The stock was trading at Rs 1,038.35, down Rs 34.30, or 3.20 percent at 09:37 hours. It has touched an intraday high of Rs 1,077.00 and an intraday low of Rs 1,030.50.
Among the different segments, electrical consumer durables segment saw a 71 percent YoY growth in revenue to Rs 712 crore in Q4. Cables business saw 51 percent revenue growth to Rs 1,029 crore.
Lloyd saw a 29 percent YoY growth in revenue to Rs 591 crore in Q4. The company said that growth has been across segments with consumer products still leading the pack.
The Havells board has recommended a final dividend at Rs 3.50 per equity share for the financial year 2020-21. This is subject to shareholder approval at its annual general meeting on June 30.
Global research firm CLSA has a sell call on the stock with target at Rs 960 per share. It is of the veiw that weak demand and margin pressure is likely to affect near-term performance adding that the management cautioned on near-term margin pressure, according to a CNBC-TV18 report.
On the other hand, Macquarie has an outperform rating on the share with target at Rs 1,276 per share. “The key surprise is solid cable segment margin that expanded QoQ. Margin in other segments declined QoQ owing to higher commodity prices,” it said.
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