HAVELLS SHARE PRICE: TARGET ACHIEVED!!!

Hello and welcome back to one more interesting article wherein we’ll discuss the Havells share price which was analysed earlier and has achieved the target predicted by us in a span of 97 days.

Let’s check the parameters which helped the Havells share price to achieve its total target of 44% approximately in 97 days.

BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT

1.    Revival in switchgear and cables which has again brought a strong foothold in the business.

2.    Double digit volume growth in cables which is likely to sustain for the upcoming future as well.

3.    Superb market share gain in durables segment.

4.    Promising trends during the festive season.

5.    Good margin gains in the Lloyd’s portion of the business.

6.    Dow Jones Sustainability Indices (DJSI) for the current year 2021 has ranked Havells India on the 7^th position among the top electrical equipment companies globally.

7.    A new campaign ‘Shower that saves power’ is initiated by the company to promote its Magnatron Water Heater.

FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT

QUARTERLY RESULTS:

Figures in Rs. Crores

Quarterly Results	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Sales	2717	2233	2273	2217	1483	2459	3175	3339	2610	3238
Expenses	2438	1997	2004	1973	1352	2038	2665	2831	2255	2793
Operating Profit	279	235	269	244	132	422	510	508	355	445
OPM %	0.1	0.11	0.12	0.11	0.09	0.17	0.16	0.15	0.14	0.14
Other Income	40	28	25	21	32	80	39	37	34	33
Interest	5	5	5	5	17	17	15	24	11	11
Depreciation	47	53	55	63	60	59	64	65	62	62
Profit before tax	267	205	234	198	87	425	470	456	317	405
Tax %	0.34	0.12	0.14	0.1	0.26	0.23	0.25	0.33	0.26	0.25
Net Profit	177	179	201	178	64	326	350	304	236	302
EPS in Rs	2.83	2.87	3.21	2.84	1.02	5.21	5.59	4.85	3.76	4.83

For the quarter ended 30-09-2021, the company reported a sales of ₹ 3,238 Cr which is an increase of 25% from the sales registered in the year ago period.

The expenses have increased gradually but it is evident from the sales that the company is using the revenue to enhance its business.

Net profit is moving in a range which is a commendable growth from the company.

BALANCE SHEET:

Reserves have increased gradually and there is a great interest shown by the investors in Havells share price.

In the quarter ended 30-09-21, the borrowings have reduced slightly which is a great sign for the company.

Figures in Rs. Crores

Balance Sheet	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Sep 2021
Share Capital	62	62	62	62	63	63	63	63	63
Reserves	1604	1756	2965	3214	3667	4135	4249	5114	5463
Borrowings	1054	424	134	208	115	94	72	521	454
Other Liabilities	2613	2546	1225	1683	2763	2856	2690	3155	3589
Total Liabilities	5332	4788	4387	5168	6608	7148	7073	8852	9568
Fixed Assets	1600	1541	1224	1300	2819	2904	3350	3290	3284
CWIP	44	38	20	12	24	233	86	90	119
Investments	0	0	189	162	0	0	0	306	310
Other Assets	3688	3209	2954	3694	3765	4012	3638	5166	5856
Total Assets	5332	4788	4387	5168	6608	7148	7073	8852	9568

SHARE HOLDING SYNOPSIS

Share Holding	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021
Promoters	59.52	59.52	59.52	59.52	59.5	59.5	59.5	59.5	59.47	59.47
FIIs	26.95	26.29	25.88	23.04	21.95	22.22	24.36	24.91	24.01	26.76
DIIs	4.64	5.82	5.89	8.27	9.64	9.86	8.36	7.89	8.17	6.12
Government	0.14	0.13	0.18	0.23	0.23	0.23	0.23	0.19	0.12	0.11
Public	8.69	8.24	8.53	8.94	8.68	8.18	7.55	7.51	8.17	7.54
Others	0.06	0.01	0.01	0.01	0.01	0.01	0.01	0.01	0.05	0.01

Promoters have maintained their position in this stock with a whopping 59.47%.

FIIs have increased their stake in this company but the retail investors are reducing their interest in the stock which is not a sign of great concern.

Now, let’s deep dive into the technicalities of Havells share price.

CHART PATTERN ANALYSIS

During the earlier analysis we did highlight the formation of the Rounding pattern.

The pattern was under formation and identifying this premium stock is a good sign from an analysis perspective.

Click here for previous analysis on Havells share price.

Havells share price did achieve its target of ₹ 1,494 and rallied till ₹ 1,506 showcasing a target achievement of 44%.

DISCLAIMER