The dividend paying stock becomes ₹1 lakh to ₹12 crore after 1 bonus share. Purchase?

Havells India Dividend

The company stated in the stock exchange filing that “The Board of Directors has also declared an interim dividend of Rs. 3/- per Equity Share of Rs. 1/- each i.e. @ 300% on the Equity Share Capital of the Company. This is to be paid to all the shareholders who whose names appear in the Register of Members as on the record date i.e. 28.01.2023 (a separate intimation to the same has already been given to the Exchanges vide letter dated 06.01.2023). Payment/Remittance of Dividend to Shareholders shall be made on or before 30 days from the date of declaration i.e. on or before February 17, 2023.”

Havells India Q3FY23 Results

In Q3FY23, the company reported a net sales of 4,127.57 crore as against 3,664.21 crore in Q3 FY22, representing a YoY growth of 12.71%. Havells India reports consolidated net profit 283.52 crore in the quarter ending December 2022 305.82 crore was recorded in the quarter ending December 2021, representing a decline of 7.30%. The company posted an EPS 4.53 per share in Q3FY23 as against 4.88 posted in the year-ago quarter.

Havells India share price and bonus share history

Havells India shares closed on NSE on Friday 1,152.00 at each level, down 4.43% from its previous close 1,205.45. The stock recorded a total volume of 3,037,526 shares as compared to 20-day average volume of 1,017,725 shares. share price climbed 1.89 on March 23, 2001 at the market price today, reaching an all-time high of 60,852.38%. If a shareholder had invested Rs. 1 lakh in this stock at its initial price level, he would have received 52,910 shares. However, after the first announcement of bonus shares, which was made on October 8, 2010 in the ratio of 1:1, the total number of shares would have gone up to 1,05,820. As a result, a total of 1,05,820 shares are now worth more than Rs. 12.19 crores, based on current market value.

Havells India share price target

After Havells India Q3 earnings, research analysts at Yes Securities said, “Havells has once again delivered inline revenue growth with sequential margin improvement. Higher volumes across product categories coupled with better performance from the B2B side.” Growth was supported, while the B2C business saw the impact of a high inflationary environment. Margins saw a gradual improvement due to stable commodity prices as most of the high cost inventory was liquidated for Havells in Q3. Margins are expected to improve further in Q4 as higher cost inventory for Lloyds is eliminated in Q4. Management is cautiously optimistic about demand as channelfilling for summer products remains strong for fans and RACs while increase in commodity prices from December end may lead to margin volatility. Considering revenue growth of 15% CAGR in FY 22-25E. However we have again seen volatility in commodity prices. Lowered its margin estimates on the back of rising rates, higher investment in brand building and normalization on A&P spend. We estimate EBITDA and PAT CAGR of 13% and 16%. respectively we maintain our target value 1,480 rate the stock at 55x our go-ahead target and reiterate our BUY rating. We see strong revenue growth momentum and gradual margin improvement over the next 2 years as the company continues to grow its distribution presence in e-commerce and rural areas. We continue to maintain our positive stance on the stock and the current correction in the stock price should be used to accumulate the stock as we feel the company can continue to outperform the industry and its peers,” he added. said further.

Prabhudas Lilladher said in a note that “We view our FY23/FY24 earnings outlook on the upside and maintain ‘Buy’ rating on Havells India (HAVL IN). Improvement in ECD mostly with fan destocking and expected price hikes, strong performance in cable business and expected gradual reduction in losses at Lloyd with reduction in high cost inventory and price hikes will augur well for Havells in the coming quarters. We are optimistic on its long-term growth prospects 1) Its diversified product portfolio covers 70% of household electric sockets 2) Amongst the top 3 players in most product categories 3) Is focused on innovation and consistently builds brand affinity and 4) Expansion of distribution reach with emphasis on untapped rural market (covering 40,000 outlets through rural expansion project in FY22 and planning to open >1000 Utsav stores by FY23). We expect an earnings CAGR of 16.9% over FY12-25 and set a DCF based target price of Rs 1,447. Maintain ‘Buy’.”

Nirmal Bang Securities said, “Havells India reports revenue of INR 41.2 billion in Q3FY23, up 12.8% YoY (3Y CAGR of 22%), driven by healthy growth across all business verticals behind is higher than our/consensus estimates of 2.1%/1.8%. Switchgears/Cables/Lighting & Fixtures/ECD/Lloyd grew by 3.7%/17.1%/3%/4.7%/30.3% YoY. Gross margin expanded 70bps YoY to 33% due to reduction in commodity cost pressure. EBITDA declined by 3.8% YoY to Rs4.2bn. EBITDA margin shrank 180bps YoY to 10.3%, which was above our estimate of 8.5% but below the consensus estimate of 10.6%. Ebitda margin improved by 250 bps QoQ mainly due to improvement in Cables segment margin following liquidation of high cost inventory. Contribution margin expanded during H1 of 3QFY23 due to stabilization in raw material (RM) prices. Consequently, PAT declined by 7.2% YoY to Rs2.8bn. The bottom line was 25% above our estimate, but 1.8% below the consensus estimate. Management highlighted that muted B2C demand impacted consumer-facing businesses. Moreover, volatility in RM cost started increasing from H2 of 3QFY23. Lloyds’ margins are expected to improve after 4QFY23 as it liquidates high-cost inventory. We believe that while there could be near-term pain on the margin front, the medium-term outlook remains strong as the brand building efforts at Lloyds are likely to pay off. We have marginally revised our numbers and continue to maintain Buy on Havells with a revised target price (TP) of Rs 1,415 (earlier Rs 1,475) on a 50x basis on Sep 24 EPS.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.