Havells India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Havells India Ltd trades at ₹1,261, in a downtrend and 82 weeks into that stage. That is −3.8% against its own 200-day average. It sits at 25% of a 52-week range of ₹1,151 to ₹1,591. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a downtrend — week 82 of stage 4, confirmed. At ₹1,261 it trades −3.8% versus its 200-day average and sits at 25% of its 52-week range (₹1,151–₹1,591).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +334% while the NIFTY 500 moved +276% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Havells India Ltd trades at 47.5× P/E, near the bottom of its own range — cheaper only 13% of the time. Its long-run median P/E is 63.8×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 47.5× is near the bottom of its own range — cheaper only 13% of the time, against a long-run median of 63.8× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +14.8% against a −15.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +1.4%/yr price move, ~+6.4%/yr came from earnings growth and ~−5.0 pp from the multiple (compressing); over 10y, of the +12.5%/yr price move, ~+11.3%/yr came from earnings growth and ~+1.2 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Havells India Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 22.6% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

56.3/100 — rank 3 of 13 in Consumer Electronics · 100% evidence confidence

Havells India Ltd scores 56.3 out of 100 against the 13 companies it is compared with in Consumer Electronics, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 23.3 + 16.9 + 7.2 + 8.9 = 56.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Havells India Ltd reported ₹6,518 Cr of revenue in the Jun 26 quarter, +19.5% year on year. That is the 4th straight quarter of year-on-year growth. Over 10 years it has compounded at 11.5% a year. The last full year, FY26, came in at ₹22,528 Cr. The last four reported quarters add to ₹23,590 Cr.

FY26 revenue came in at ₹22,528 Cr (+3.4% on the year), capping 10 years at 11.5% compound. The latest quarter (Jun 26) printed ₹6,518 Cr, +19.5% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +10.4% growth against the decade's 11.5% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +10.1% over the last 4 quarters against +9.8%/yr over the last 8 — stabilising; TTM profit +15.6% vs +8.2%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Havells India Ltd's operating margin is 7.0% in the Jun 26 quarter, −2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0% to 15.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 7.0%, −2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0%–15.0%.

🚨 Why the margin moved: operating margin went −2.3 pp year on year while gross margin went −2.1 pp — the loss came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Havells India Ltd earned ₹290 Cr of net profit in the Jun 26 quarter, −16.7% year on year. Full-year FY26 profit was ₹1,689 Cr. The 10-year compound rate is 2.7%. That is 4.4% of the quarter's revenue. The same quarter a year earlier earned ₹348 Cr.

Jun 26 profit was ₹290 Cr, −16.7% year on year. On the full year, FY26 printed ₹1,689 Cr (+14.9%), and the 10-year compound rate is 2.7%.

🚨 Why profit moved: revenue contributed +19.5% and the margin −2.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +12.4% vs revenue +10.4%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 114% of Havells India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,572 Cr of operating cash against ₹1,689 Cr of profit. After ₹1,448 Cr of capital spending, ₹124 Cr was left as free cash.

FY26: operating cash of ₹1,572 Cr against reported profit of ₹1,689 Cr, leaving free cash of ₹124 Cr after ₹1,448 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 114% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 114%: the cash cycle tightened 28 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 2.7× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Havells India Ltd's cash conversion cycle runs 51 days in FY26, down from 79 days in FY21. Capital spending ran ₹3,169 Cr over the last 3 years. At FY26 sales of ₹22,528 Cr each day of that cycle holds about ₹61.7 Cr, so roughly ₹3,148 Cr sits inside the business at any moment.

FY26: debtors at 13 days, inventory at 110 days — roughly 3.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 51 days, tighter than FY21's 79.

The full loop: cash goes out to suppliers and production on day 0; stock waits 110 days to sell; customers pay about 13 days after that; and suppliers themselves are paid at 72 days — netting out to the 51-day cycle.

In money terms: at FY26 sales of ₹22,528 Cr, each day of the cycle holds about ₹61.7 Cr — so the 51-day loop keeps roughly ₹3,148 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹3,169 Cr over the last 3 fiscal years against ₹1,170 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹443 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Havells India Ltd earns a ROCE of 25% in FY26. That is up from a trough of 22% in FY20. Return on invested capital clears the cost of that capital by +5.7 percentage points, so growth here adds value rather than only size. The wiring behind it is 7.5% net margin on 1.53× asset turns.

FY26 ROCE is 25%, recovered from a FY20 trough of 22% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 7.5% net margin × 1.53× asset turns × 1.56× balance-sheet leverage ≈ 17.9% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 17.7% − 12.0% = a +5.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Havells India Ltd carries total debt of ₹265 Cr against shareholder equity of ₹9,469 Cr as of Jun 26, a debt-to-equity of 0.03 — effectively unlevered. On the annual view that ratio went from 0.10 in FY22 to 0.03 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹265 Cr against shareholder equity of ₹9,469 Cr — a debt-to-equity of 0.03. On the annual view, debt-to-equity went from 0.10 (FY22) to 0.03 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 9.4 points of Havells India Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 15.9% of the company. Domestic institutions moved +8.6 points over the same window, to 18.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −9.4 points over 8 quarters to 15.9%; Domestic institutions: +8.6 points over 8 quarters to 18.0%; Promoters: −0.1 points over 8 quarters to 59.4%.

Why the register moved: rotation — foreign institutions −9.4 points against domestic institutions +8.6 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Havells India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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