Havells India Limited (HAVELLS.NS): Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 2
- 2 min read
by KarNivesh | 02 September, 2025
Havells India Limited has established itself as one of the most trusted names in the electrical goods sector. From humble beginnings in 1958 as a small trading shop founded by Qimat Rai Gupta, the company has grown into a global player, operating across more than 70 countries. Today, Havells is not only a leader in India’s fast-moving electrical goods (FMEG) industry but also a strong investment story for the future.
Strong Financial Performance
Havells has delivered consistent growth over the last five years. Its revenues increased from ₹10,383 crores in FY21 to ₹21,778 crores in FY25, reflecting an impressive 20.4% CAGR. Net income for FY25 stood at ₹1,472 crores, with return ratios like ROE at 18.6% and ROCE at 24.8%, highlighting efficient capital use.
One of Havells’ biggest strengths lies in its near debt-free balance sheet. With a debt-to-equity ratio of just 0.04 and a healthy cash reserve of ₹33,630 crores, the company enjoys financial flexibility to pursue new growth opportunities.
Business Model and Market Presence
Havells’ diversified portfolio spans six major brands: Havells, Havells Studio, Lloyd, Crabtree, Standard Electricals, and REO. This multi-brand approach helps it serve a wide spectrum of consumers, from budget-conscious buyers to premium customers.
The company has also built a formidable distribution network, comprising over 18,000 direct dealers, 2.5 lakh retailers, and 637 exclusive Havells Utsav stores. With its Rural Vistaar initiative reaching more than 3,000 small towns, Havells is not just an urban success story but also a rural growth driver.
Strategic Investments and Growth Drivers
Havells is actively preparing for the future with investments in renewable energy and capacity expansion. Its ₹600 crore stake in Goldi Solar marks a strategic entry into India’s booming solar industry. Management expects this venture to generate ₹1,000–1,500 crores in revenue within the next couple of years.
Similarly, an investment of ₹715 crores in cable manufacturing expansion positions the company to benefit from India’s infrastructure growth. The Lloyd brand, acquired earlier, continues to strengthen Havells’ presence in consumer durables like air conditioners and appliances.
Stock Valuation and Market Trends
Currently trading at around ₹1,590 (September 2025), Havells’ stock reflects a premium valuation with a P/E ratio of 67.7x. While this indicates strong investor confidence, it also means the margin of safety for new investors is limited. The stock touched a high of ₹2,106 in 2024 but has since corrected nearly 25%.
Despite this correction, Havells has rewarded long-term investors with a 5-year CAGR of 20%, proving its ability to deliver consistent value. Analysts project future earnings growth of 17.9% annually, with potential price targets between ₹1,691 and ₹2,971 by 2027.
Risks to Watch
Like any business, Havells faces challenges. Raw material price volatility, rising competition, and its dependence on the Indian market pose risks. Moreover, premium valuations make the stock sensitive to any slowdown in growth.
Final Takeaway
Havells India Limited stands as a resilient company with strong fundamentals, market leadership, and exciting future prospects in renewable energy and infrastructure. For long-term investors, it offers a compelling growth story, though patience and timing are key due to its high valuation.
Comments