Frequently asked questions
Is Havells a buy at current prices?
DalalBytes rates Havells Selective Positive, scoring it 74/100, because the 38.6x FY26 earnings multiple is only half-earned. The core electricals franchise is best-in-class, but nearly a quarter of revenue is hostage to weather through Lloyd, which lost Rs 203 crore in FY26. The call: demand two clean Lloyd quarters and cables growth above 15% before paying up.
What are Havells' FY2029 price targets?
DalalBytes' FY2029 targets for Havells are bear Rs 1,050, base Rs 1,730, and bull Rs 2,420, from a Rs 1,040 reference price. The bear case assumes Lloyd stays loss-making through a third weak summer with a cables pricing war. The base case assumes Lloyd breaks even and cables grows 15%+. The bull case assumes Lloyd turns profitable with a 55x re-rating toward the historical premium.
What is the verdict on Havells India?
Havells is two companies wearing one ticker. The first is India's finest electrical-goods franchise: number one or two in switchgear, lighting and fans, a wires and cables business growing at 20%+ with 16-17% contribution margins, a dealer network of roughly 7,500 direct dealers and 100,000 retail outlets that competitors cannot replicate quickly, and a debt-free balance sheet run by a promoter family with 59.4% skin in the game and zero pledge. The second is Lloyd, the air-conditioner and consumer-appliance business bought in 2017, which lost Rs 203 crore at the EBIT line in FY26, needs a perfect summer every year just to break even, and faces Voltas, Daikin, Blue Star and LG in a market where Havells holds roughly 4% share.
The 30% fall over the past year is the market refusing to pay the old 50x earnings multiple for a company where nearly a quarter of revenue is hostage to the weather and copper is at record highs. At Rs 1,040 the stock trades at 38.6x FY26 earnings and roughly 35x FY27 street estimates: still a full multiple for mid-teens earnings growth, but well below the 50-55x forward P/E it commanded for years. The premium is currently half-earned, which is why this is Selective Positive, not Positive. What would make it Positive: Lloyd returning to break-even-plus and cables sustaining 15%+ growth through the Rs 340 crore capacity expansion. Score: 74/100.
How does the Havells business engine work?
FY26 revenue Rs 22,528 cr (+3.4%), EBITDA Rs 2,202 cr (9.8%), PAT Rs 1,689 cr, ROCE 25.7%, zero debt. Cables grew about 20-25% to roughly Rs 8,677 cr (39% of revenue) at 16.5% contribution margin with capacity 90-100% utilized. Switchgear holds 37-40% contribution margins and the #1 position in MCBs. About 90% of sales are manufactured in-house. Lloyd's FY26 revenue fell about 23% after a weak 2025 summer, and the weak 2026 summer keeps the overhang into FY27.
What protects Havells' distribution moat?
About 7,500 direct dealers, about 100,000 retail outlets, 700+ exclusive Galaxy brand showrooms, and about 220,000 engaged electricians: the trade's default recommendation. The largest advertiser in Indian electricals (3-4% of revenue), sustaining a 5-10% price premium in switchgear and wires. Debtor days of 12 prove the channel pulls product rather than being pushed. But 25-30% of revenue has no moat: Lloyd competes on price and advertising, institutional cables are tender-priced, lighting B2C is deflating, and Polycab and KEI match Havells on cables scale.
Can Havells pass through commodity costs?
Copper at a record LME $14,533/t (+34% YoY), yet gross margin improved to 33.1%: proof of pass-through in core electricals. In cables and switchgear, price revisions and inventory gains protect margins; in Lloyd, intense competition blocks pass-through, which is exactly why the AC business bleeds when commodities run.
What is Havells worth? (valuation and scenarios)
FY2029 targets: bear Rs 1,050 (Lloyd stays loss-making, third weak summer, cables pricing war, 35x depressed EPS), base Rs 1,730 (Lloyd breaks even, cables grows 15%+, 45x), bull Rs 2,420 (Lloyd turns profitable, cables compounding, 55x re-rating toward the historical premium). Peer multiples at the Oct 1 close: Polycab 42x, KEI 43.2x, Crompton about 27x, Voltas 60-84x; Havells at 38.6x FY26, below its historical 50-55x premium, which is currently half-earned.
What are the key risks for Havells?
A third weak summer, UltraTech Cement and the Adani-Praneetha JV entering wires and cables from FY27 and dragging pricing, copper staying at records, and new adjacencies (Goldi Solar stake, Sri City white goods) consuming fortress cash without returns. Also: PAT growth in FY26 (+14.9%) was flattered by Rs 533 crore of other income; operating profit grew only about 2%.
What would change the verdict?
Up to Positive: two clean Lloyd quarters and cables margins holding above 15% through new entry. Down to Neutral or worse: a third weak summer, or cables pricing collapses. Until Lloyd shows two clean quarters, let the turnaround prove itself before paying up.
© 2026 DalalBytes Research · For educational purposes only. Not investment advice.