Best Stocks to Buy Today : IIFL Securities's call on Havells India - September 12

IIFL Securities maintains a bullish view on Havells India, recommending a buy call with a target price of Rs 2050. This represents a potential upside of approximately 3% from the current market price of Rs 1985.55. The stock is expected to benefit from favorable industry trends, including the rising demand for electrical products in the retail and construction sectors, as well as its strong brand presence and market share.

About Havells India:

Havells India is a leading electrical equipment company in India, with a presence in over 50 countries. The company manufactures a wide range of products, including fans, lighting fixtures, wires and cables, and switchgears. Havells has a strong distribution network of over 70,000 dealers and distributors, and its products are sold in over 100,000 retail outlets across India. The company has a market share of over 50% in the Indian fan market, and it is also a leading player in the lighting and switchgear segments. Havells has a strong focus on innovation, and it invests heavily in research and development. The company has a team of over 1,000 engineers and scientists, and it has filed over 1,000 patents worldwide.

52 Week Price Trend:

Havells India, an NSE-listed electrical equipment manufacturer, currently trades at Rs 1985.55. Its 52-week high and low prices stand at Rs 1472 and Rs 1128.1, respectively. While the CMP is significantly higher than the low, it has yet to reach the peak. This suggests potential for further appreciation, although investors should carefully consider market conditions and company fundamentals before making any investment decisions.

Stratzy's MOST Analysis:

Stratzy's MOST framework assigns HAVELLS an AAA rating, denoting minimal fundamental risks. This assessment is based on evaluations of the company's management, outlook, safety, and trend. The AAA rating indicates that HAVELLS exhibits strong management, positive growth prospects, a sound financial position, and a favorable market trend. This comprehensive analysis highlights HAVELLS' fundamental strengths and positions it as a low-risk investment with promising long-term prospects.

Company's Fundamentals:

Havells India (NSE:HAVELLS) exhibits financial ratios that provide insights into its valuation and performance. The Stock PE of 75.5 indicates that investors are willing to pay 75.5 times the company's annual earnings for a share. The PB Ratio of 12.94 suggests that investors are paying 12.94 times the book value of the company's assets for a share. Despite these high valuation ratios, Havells India offers a modest Dividend Yield of 0.53%, implying that investors prioritize growth potential over immediate income.

Fundamental and Technical information provided in this blog were last updated on 12 Sep, 2024

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