Havells India Limited Just Beat Revenue By 13%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Havells India Limited (NSE:HAVELLS) released its second-quarter result to the market. The early response was not positive, with shares down 8.0% to ₹1,031 in the past week. Havells India beat revenue forecasts by a solid 13% to hit ₹64b. Statutory earnings per share came in at ₹5.57, in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Havells India from 23 analysts is for revenues of ₹273.8b in 2027. If met, it would imply a notable 8.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 2.2% to ₹25.94 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹260.9b and earnings per share (EPS) of ₹26.41 in 2027. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.
View our latest analysis for Havells India
It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹1,296, implying that the uplift in revenue is not expected to greatly contribute to Havells India's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Havells India, with the most bullish analyst valuing it at ₹1,600 and the most bearish at ₹1,050 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Havells India's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 12% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Havells India is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Havells India will grow in line with the overall industry. The consensus price target held steady at ₹1,296, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Havells India going out to 2029, and you can see them free on our platform here.
Even so, be aware that Havells India is showing 1 warning sign in our investment analysis , you should know about...
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