Havells India shares rise despite marginal fall in Q3

Havells recently released the financial quarter result for Q3, which shows that the net profit marginally fell. However, the company’s share has risen by 2% despite unsatisfactory results. Their profit has been reduced to RS 283 crore in the quarter completed on 31st December. It is slightly less than the amount of RS 288 crore during the previous quarter. On the other hand, the company’s revenue has increased by 11%, while there is a significant boost in the total expenses by 12.3%.

It showcases a solid demand from the company’s switchgear project segment that deals with inventory destocking issues related to wires during the third quarter. It has caused a significant effect on the margins because of the inferior product mix and price deflation in the lighting sector. However, many concerns have been raised by analysts regarding the valuation of the company’s stock. If we talk about Motilal Oswal Financial Services and Nuvama, they have revised the company's targets recently.

Nomuraa has reduced the Havells India target to RS 1,943, which is almost 2% lower than the previous target of RS 1,990. They have also changed the rating to neutral which was previously neutral. The company is expected to soon enter the growth trajectory due to new capacities in the cable market and excellent demand in the wires industry.