Shares of Havells India rallied 3.9% to an intraday high of Rs 1,617.95 on the BSE after the company reported its Q3 results for FY25 on Thursday, posting a marginal 1.7% year-on-year (YoY) decline in its net profit at Rs 283 crore against Rs 288 crore in Q3FY4.However, the company reported an 11% jump on a YoY basis in its net revenue at Rs 4,883 crore versus Rs 4,401 crore reported in the third quarter of the previous financial year.Segmentally, the Switchgears segment witnessed a 10.8% YoY growth at Rs 577 crore while the cable segment gained 7.3% YoY. Lighting & Fixtures segment witnessed a growth of 2.5% YoY, Electrical Consumer Durables segment witnessed a growth of 15% YoY and the other segments’ growth was recorded at 22.8% YoY.The company has also declared an interim dividend of Rs 4 per share for its shareholders, with the record date fixed as January 22.Here is what the brokerages said post the company’s Q3 update:UBS: Buy| Target price: Rs 2,145| Upside potential: 37.7%UBS has maintained a "Buy" rating on Havells with a target price of Rs 2,145.UBS states that the weak B2C margins of Havells reflects a slower consumer demand recovery while potential pricing impact could lead to earnings downgrades for Havells.UBS has a positive outlook for KEI and Polycab due to a 250 basis points quarter-on-quarter (QoQ) margin gain in cables.JP Morgan: Neutral| Target price: Rs 1,750| Upside potential: 12.4%JP Morgan has maintained a "Neutral" rating on Havells with a target price of Rs 1,750.Havells' earnings were below expectations due to margin pressure. The Cables & Wires growth was muted due to channel destocking amid copper price softness, while the Electrical Consumer Durables (ECD) grew 15% year-on-year (YoY), boosted by festive demand. Switchgears revenue rose 11% YoY, driven by real estate and project business and the Industrial segment remained muted.Nuvama: Buy| Target price: Rs 1,940| Upside potential: 24.5%Nuvama retained a ‘buy’ rating on Havells with a target price of Rs 1,940.Havells’s 3QFY25 print is a mixed bag. Healthy revenue (+11% YoY) and gross profit growth (+15% YoY) were offset by higher employee costs (+23% YoY) and other expenses (+12% YoY; relocated SG plant to another existing location). While the ECD segment sustained strong growth (+15% YoY; +16% CAGR), margins were impacted by deepening R&D and distribution aspects of the business. Nuvama now reckons FY24–27E revenue/EBITDA/PAT CAGR of 15%/19%/20%.Also read: Q3 results today: Wipro, Jio Financial among 36 companies to announce earnings on Friday(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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