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 7th 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 ResultsJun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Sales 2717223322732217148324593175333926103238
Expenses 2438199720041973135220382665283122552793
Operating Profit279235269244132422510508355445
OPM %0.10.110.120.110.090.170.160.150.140.14
Other Income40282521328039373433
Interest5555171715241111
Depreciation47535563605964656262
Profit before tax26720523419887425470456317405
Tax %0.340.120.140.10.260.230.250.330.260.25
Net Profit17717920117864326350304236302
EPS in Rs2.832.873.212.841.025.215.594.853.764.83

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 SheetMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Sep 2021
Share Capital 626262626363636363
Reserves160417562965321436674135424951145463
Borrowings10544241342081159472521454
Other Liabilities 261325461225168327632856269031553589
Total Liabilities533247884387516866087148707388529568
Fixed Assets 160015411224130028192904335032903284
CWIP44382012242338690119
Investments00189162000306310
Other Assets 368832092954369437654012363851665856
Total Assets533247884387516866087148707388529568

SHARE HOLDING SYNOPSIS

Share HoldingJun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Promoters 59.5259.5259.5259.5259.559.559.559.559.4759.47
FIIs 26.9526.2925.8823.0421.9522.2224.3624.9124.0126.76
DIIs 4.645.825.898.279.649.868.367.898.176.12
Government 0.140.130.180.230.230.230.230.190.120.11
Public 8.698.248.538.948.688.187.557.518.177.54
Others 0.060.010.010.010.010.010.010.010.050.01

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

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