TARGET ACHIEVED:
Hello and welcome back to one more article wherein we would analyze Havells India share price in the best possible way through Business, Fundamental and Technical analysis.
So, the stock for today is Havells India.
Table of Contents
BUSINESS ANALYSIS
Havells India is a leading fast moving electrical goods (FMEG) company and a major power distribution manufacturer with a string global presence.
It has a market dominance in a wide range of products, including Industrial & Domestic circuit protection devices, cables & wires.
It has also its presence in Motors, Fans, Modular switches, Home appliances, Air conditioners, Electric water heaters, power capacitors.
Havells India has also Luminaries for Domestic, Commercial and Industrial applications.
Brands such as Lloyd, Crabtree, Standard, Havells and REO are owned by this group.
The company has 11,000 direct dealers, 160,000 retailers and 250,000 electricians.
Cables division contributes to 32% of the revenue of Havells India Limited.
The company ranks 1st in MCBs and water heaters, 2nd in Fans, 3rd in switches, Flexible & power cables, lightning, fixtures and other appliances.
Manufacturing capabilities is so developed that 90% of the products are built in house.
Now coming to the Financials of the company.
FINANCIAL ANALYSIS
The market capitalization of Havells India is Rs. 65,324 Cr.
The price to earnings ratio of the Havells India share is 65.1 which is quite greater than the industry price to earnings ratio of 29.4.
The return on capital employed is 29.2% which is pretty awesome and gives us a confidence on the bright future of Havells India share price.
The return on equity is 21.2% which states the returns an investor will get when certain amount will be invested in the Havells India share price.
The company has a debt to equity ratio of 0.10 which is manageable by the company and this does not possess any threat to the growth of the company.
Based on the market capitalization, Havells India stands tall at the 2nd position in the CAPITAL GOODS – ELECTRICAL EQUIPMENT sector.
From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) the sales have increased tremendously from Rs 1,483 Cr to Rs 3,339 Cr.
The operating profit from the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) has also increased from Rs 132 Cr to Rs 510 Cr.
The expenses are also increasing slightly so this parameter should not affect our interest in the Havells India share price.
The net profit was Rs 64 Cr in the June 2020 quarter due to Covid pandemic, but it has drastically increased to Rs 304 Cr in the March 2021 quarter.
The earnings per share value is Rs 4.85.
There is a steady profit growth year on year as the operating profit rose from Rs 1,067 Cr in March 2020 to Rs 1,589 Cr in March 2021.
In the year 2021, the reserves have increased to Rs 8,868 Cr from Rs 8,374 Cr in the year 2020 which shows the massive interest of investors into Havells India share price.
The share capital of the Havells India has remained to a steady position of Rs 63 Cr in the year 2021.
In the year ended March 2021 the company had a net cash flow of Rs 87 Cr which it can utilize for expansion and growth purpose.
Promoters have a holding of 59.50% till March 2021 quarter.
The FII’s have a 24.91% holding.
The DII’s have a 7.89% holding while only 7.51% is with the public.
The company is in safe hands and their growth is pretty much awesome.
This is a brief overview of the Financials of the company which showcases the dominance in their respective market.
Now let’s deep dive in technical aspect of the stock.
TECHNICAL ANALYSIS
If we give a closer look on the chart in a daily timeframe, we can see that there is a rounding pattern formation.
This pattern has a unique structure and a breakout might be achieved in a short interval of time.
The pattern is under formation and is ready to achieve its target.
The Havells India share price on 12th July 2021 is Rs. 1,042 which would definitely vary in the upcoming future.
The high price of the stock in the last 1 year was Rs 1,231.
The above image shows the chart pattern which is under formation.
DISCLAIMER:
This analysis is only for study purpose. Please don’t buy or sell the stocks based on these analysis. Everyday prices vary so there will be a definite change in the chart patterns as well. We just intent to share the stock information through this platform.
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