Havells India Ltd.
NSE: HAVELLSHavells India Ltd.: A 30-second snapshot
Havells India (₹1,199.20) is an electricals and consumer appliances company trading 22% below its 52-week high, below both the 50-DMA (₹1,279.98) and 200-DMA (₹1,416.12), following a 6% single-session decline after Q4 FY26 results triggered multiple institutional rating changes. The stock carries a trailing PE of 44.9x — the lowest among its five Consumer Goods peers — with an ROE of 18.97% and a debt-to-equity of 2.8x on a rising debt trend.
P/E
44.9
Forward P/E
35.6
ROE
+19.0%
Debt / Equity
2.80
Profit Margin
+7.5%
Div. Yield
+1.0%
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
58/100
News
8 headlines · 3 positive · 3 negative
Results: Havells India Limited Beat Earnings Expectations And Analysts Now Have New Forecasts - simplywall.st
simplywall.st
At least three downgrades after Q4 results take Havells India shares down by 6% - CNBC TV18
CNBC TV18
Havells shares tank 6% post weak Q4 show. Morgan Stanley cuts to underweight, Goldman Sachs trims target - The Economic Times
The Economic Times
Havells India Q4 Results: Shares Jump After Profit Beats Estimates, Dividend Approved - NDTV Profit
NDTV Profit
Havells logs biggest fall since Jan 20 after Q4; buy, hold or exit at current levels? - Zee Business
Zee Business
Recent context
- ·Q4 FY26 results (April 2026) showed net profit beating estimates and a dividend approval per NDTV Profit, but the same results prompted at least three analyst downgrades, including Morgan Stanley moving to underweight and Goldman Sachs trimming targets, sending the stock down ~6% in a single session.
- ·RSI stands at 38.58 (classified neutral by the model), approaching but not yet at conventionally oversold territory (<30); nearest support is identified at ₹1,142.50, approximately 4.7% below the current price.
- ·News sentiment across 8 articles is balanced at 3 positive / 2 neutral / 3 negative; the negative cluster is concentrated around the post-Q4 institutional downgrades, while the positive cluster references the earnings beat itself.
Strengths
- +Lowest PE among six tracked Consumer Goods peers (44.9x vs. TITAN 72.2x, TRENT 85.7x, DMART 95.4x, ASIANPAINT 65.5x), indicating a relative valuation discount within the sector.
- +5-year earnings CAGR of 39.6% reflects sustained profit growth; ROE was above 15% in 4 of the tracked years, and the consistency score of 66/100 is the second-highest in the peer group.
- +Forward PE compresses to 35.6x vs. trailing 44.9x, implying the market and analysts embed continued earnings growth into near-term estimates.
- +Mean analyst rating of 1.94 across 36 analysts (1–5 scale, lower = more constructive) reflects a coverage base that leans toward the constructive end of the spectrum, with 36 analysts actively tracking the name.
Weaknesses
- −Stock has declined 22.01% over the past 12 months and 12.59% over the past 3 months, trading below both the 50-DMA and 200-DMA with a 25.8% drawdown from the 52-week high — a sustained multi-month price deterioration.
- −Debt-to-equity of 2.801 with a rising debt trend and FCF positive in only 3 of the tracked years raises questions about balance-sheet headroom relative to a capital-intensive expansion strategy.
- −At least three institutional downgrades followed Q4 FY26 results per CNBC TV18; Morgan Stanley moved to underweight and Goldman Sachs trimmed its target per The Economic Times, representing a notable shift in sell-side sentiment within a single earnings cycle.
- −5-year revenue CAGR of 2.5% against a 39.6% earnings CAGR creates a divergence that typical margin-expansion narratives only partially explain; topline growth sustainability has not been demonstrated at the same rate as profit growth.
Open questions
- ?Does the 39.6% five-year earnings CAGR reflect a structural improvement in Havells' product mix and operating leverage, or is it significantly influenced by a low-base recovery period that may not repeat?
- ?How does a rising debt-to-equity trend (currently 2.8x) interact with Havells' capital expenditure plans in cables, EV infrastructure, or Lloyd appliances — and at what leverage level does the balance sheet constrain investment?
- ?Given that at least three institutional investors downgraded after Q4 results that beat earnings estimates, what specific forward-guidance metrics or margin assumptions drove the negative revisions?
- ?If HAVELLS' PE re-rates toward the sector median over time, what fundamental outcomes — revenue acceleration, debt reduction, or FCF inflection — would be needed to sustain the current earnings trajectory?
Peer comparison: Consumer Goods
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HAVELLS | Havells India Ltd.You're viewing | 44.9 | +19.0% | 42 |
| Industry avg | across 5 peers | 79.7 | +19.6% | 37 |
| TRENT | Trent Ltd. | 85.7 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.4 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 72.2 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 65.5 | — | 23 |
Technical state
Current price
₹1,199.20
SMA 50
₹1,279.98
SMA 200
₹1,416.12
RSI (14)
38.6 (neutral)
From 52w high
-25.8%
1Y return
-22.0%
3M return
-12.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumHAVELLS is trading at ₹1,199.20, below both its 50-DMA (₹1,279.98) and 200-DMA (₹1,416.12), with a 25.8% drawdown from the 52-week high and a 22.01% decline over the past 12 months.
- mediumAt least three broker downgrades followed Q4 FY26 results per CNBC TV18; Morgan Stanley revised its rating to underweight after Q4, and Goldman Sachs trimmed its price target per The Economic Times — multiple named institutions moved constructively negative within the same earnings cycle.
- mediumDebt-to-equity of 2.801 with a rising debt trend; FCF was positive in only 3 of the tracked years, indicating inconsistent cash generation against a capital-intensive growth posture.
- low5-year revenue CAGR of 2.5% contrasts with a 5-year earnings CAGR of 39.6%. A gap of this magnitude typically reflects margin recovery or one-time items rather than durable topline expansion, and its sustainability merits scrutiny.
Cross-section contradictions
- Q4 FY26 profit beat estimates and the stock jumped initially (per NDTV Profit), yet it subsequently fell ~6% and is down 22% over 12 months — the market response to the same results was split, with multiple institutional downgrades outweighing the earnings beat.
- 5-year earnings CAGR of 39.6% and ROE above 15% in 4 of the tracked years point to improving profitability, but the composite quality score of 42/100 ranks 2nd-lowest among a 6-peer Consumer Goods set, suggesting the quality composite captures cash-generation or balance-sheet dimensions where HAVELLS scores less strongly.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days