Stratzy's Stock Idea: Buy Havells India with Target Rs 1627
On March 28, investment advisory firm Stratzy issued a buy call on the shares of Havells India. The target price set by Stratzy for Havells India is Rs 1627, which represents an upside potential of approximately 8.4% from the current market price of Rs 1500.65. This buy call indicates Stratzy's positive outlook on the company's prospects and its belief that the stock is currently undervalued.
About Havells India:
Havells India Ltd., established in 1958, is a leading electrical goods company in India. It manufactures a wide range of products, including electrical wires and cables, lighting fixtures, fans, motors, and home appliances. Havells operates in over 50 countries and has a strong presence in the domestic market. The company's focus on innovation, quality, and customer satisfaction has contributed to its success and made it a recognized brand in the electrical industry.
52 Week Price Trend:
Havells India's current market price (CMP) of Rs 1500.65 is within the range fluctuated between Rs 1128.1 (52-week low) and Rs 1472 (52-week high). This indicates that the stock has been consolidating recently, neither making significant gains nor falling sharply. Investors may want to monitor the stock's price action closely to determine if it breaks out of this range and establishes a new trend.
Stratzy's MOST Analysis:
Havells has received a "AAA" rating under Stratzy's MOST framework, indicating low fundamental risk. This rating suggests that Havells excels in terms of management quality, growth prospects, financial safety, and favorable industry trends. The company's strong management team, consistent financial performance, and its position as a leading electrical equipment manufacturer provide a solid foundation for sustained growth and stability. The favorable industry outlook and the company's continuous focus on innovation and expansion further enhance its overall risk profile.
Company's Fundamentals:
Havells India (NSE: HAVELLS) offers insight into its financial health through key metrics. The stock PE ratio of 75.5 indicates that investors are willing to pay a premium for its earnings. The PB ratio of 12.94 suggests that the stock is trading at 12.94 times its book value, implying that it is slightly overvalued. However, the dividend yield of 0.53% provides investors with a modest income stream, balancing the higher valuation. These metrics collectively provide a comprehensive view of Havells India's market position and financial stability, helping investors make informed investment decisions.
Fundamental and Technical information provided in this blog were last updated on 28 Mar, 2024
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