Buy Havells India; target of Rs 1800 : ICICI Securities

ICICI Securities research report on Havells India

We remain constructive on Havells, as its FY25 annual report indicates aggressive investments across key business parameters such as R&D, distribution, branding and capex. Takeaways: 1) Havells’ capex in cables and white goods augurs well. 2) Retailer network has expanded to 260,000 in FY25, from ~100,000 in FY16 – at a CAGR of 11.6%. The electrician network has expanded from 150,000 in FY16 to 301,000 in FY25. 3) Havells has invested INR 6,244mn towards brand-building activities. Given its investments in BTL activities, we believe Havells has probably a higher share-of-voice than most peers. 4) With operating leverage, cost-saving initiatives and investments in market share gains, Lloyd has turned profitable in FY25, having posted losses over FY22-24.

Outlook

We remain positive on Havells given its strong competitive advantages such as wide product portfolio, strong distribution network and established brand portfolio. We maintain BUY with a DCF-based TP of INR 1,800, implying target P/E of 53x FY27E.

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Havells India - 12092025 - icici