Technical Analysis

52-WEEK BLOCKBUSTER: HAVELLS INDIA

Rajalakshmi Sivam | Updated on March 09, 2018 Published on March 10, 2012

An increased share in the retail cables segment, entry into home appliances, higher demand for compact fluorescent lamps in the market and the successful restructuring of Sylvania-Havells' European subsidiary, helped the stock of Havells India climb 61 per cent in the last one year.

For the nine months of FY12, the company has reported a 22 per cent growth in net sales on a standalone basis. Net profits reported a year-on-year growth of 15 per cent.

In the above period, sales of the cable and consumer durable divisions recorded growths of 28 per cent and 24 per cent respectively. This was due to increased volume sales and higher realisation. With copper in an uptrend again, one more round of price increase can be expected in cables and wires.

Havells had recently launched mixer-grinders and electric irons pan-India. The company is also all set to launch room coolers soon.

The successful turnaround at Sylvania, thanks to cost cutting measures has also helped Havells' stock in its rally. Sylvania turned to profits at the net level in June 2011 quarter.

To grow sales at Sylvania, Havells is now shifting its focus from Latin America to Asia. This could help in a strong sales growth, going ahead. The with-recourse debt on Havells India following Sylvania's acquisition has been completely repaid now. The consolidated debt-to-equity ratio is at 1.4 times.

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