Havells India Limited (NSE: HAVELLS) shareholders will have a reason to smile today. The analysts have significantly improved the legal forecasts for the next year. The analysts have significantly increased their sales estimates, indicating a significant improvement in the fundamentals of the business. The market may also be calculating blue skies, with the stock price rising 14% to £ 1,123 over the past 7 days. It will be interesting to see if today’s upgrade is enough to propel the stock any higher.
After the upgrade, the seven analysts are now forecasting sales of GBP 122 billion for Havells India in 2022. If this were to be achieved, it would mean a significant sales improvement of 30% compared to the previous 12 months. Statutory earnings per share are expected to increase 25% to £ 18.43. Prior to this update, analysts had forecast sales of £ 107 billion and earnings per share (EPS) of £ 15.00 in 2022. Lately, perception has definitely improved, with analysts increasing both their earnings and sales estimates significantly.
Check out our latest analysis for Havells India
With these upgrades, we’re not surprised to see analysts raised their target price 28% to £ 1,029 per share. That is not the only conclusion we can draw from this data, however, as some investors also like to consider the dispersion of estimates when evaluating analyst price targets. Havells India’s most bullish analyst has a price target of £ 1,400 per share, while the most pessimistic is £ 530. This is quite a wide spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the company.
These estimates are interesting, but it can be useful to draw some broader lines when you see how the projections compare to both Havells India’s past performance and to peers in the same industry. The latest estimates suggest that Havells India’s growth rate is expected to accelerate significantly. The forecast sales growth of 30% is noticeably faster than the historical growth of 5.0% pa over the last five years. Compare this to other companies in the same industry whose sales are expected to grow 16% over the next year. It seems obvious that while the growth prospects are better than in the recent past, analysts also expect Havells India to grow faster than the entire industry.
The bottom line
Most importantly, with this upgrade, analysts have revised their earnings per share estimates for the next year in anticipation of an improvement in business conditions. They have also updated their sales estimates for the next year, and sales are expected to grow faster than the broader market. Given that the consensus appears almost universally bullish, with a significant increase in forecasts and a higher price target, Havells India may be worth investigating further.
Against this background, the long-term development of the company’s profit is much more important than next year. We have estimates – from several analysts at Havells India – for the year 2025, which you can see here for free on our platform.
Another way to find interesting companies that could hit a tipping point is to keep track of whether management is buying or selling using our free list of Growing Companies That Buy Insiders.
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Is Havells a Debt Free Company?
We can see that Havells India Limited (NSE: HAVELLS) is using debt in its business.
Is Havells an Indian company?
Today Havells is the largest Indian manufacturer of consumer electronics and the fourth largest brand for electrical lighting worldwide with a group turnover of 1.3 billion US dollars.
Are Havells made in China?
While most manufacturers are content to import cheap products from China and put their logos and brand names on them before they are sold in India, Havells is getting the hang of it, said the company’s deputy director YK Gupta. This means that Havell’s lighting, lights and fans are manufactured in our own factories.
Who owns Havells?
Anil Rai Gupta Chairman & amp; Managing Director, Havells India Ltd. Shri Anil Rai Gupta, chairman of a managing director of Havells, is the chairman and managing director of Havells and the son of the late Shri Qimat Rai Gupta.
Why is Havells’ share price falling?
According to Havells, household wires grew in the low single digits. Power cables have been hurt by the slowdown in industry and infrastructure, as well as falling commodity prices. & Quot; … So far the Havells India share has fallen by around 20% this fiscal year.
Why is Havells’ share price rising?
In half a decade Havells India managed to increase earnings per share by 14% per year. So the EPS growth rate is pretty close to the annualized price increase of 16% per year. … Indeed, the share price seems to be reacting to the EPS.