Havells India (HAVELLS)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor first. Havells is a consumer electronics business with a market cap of ₹81,458 Cr at ₹1,298. On quality, it scores well: ROE 17.84%, ROCE 25.32%, debt/equity only 0.03, Piotroski F-Score 8/9 and Altman Z-Score 6.55. Free cash flow is ₹1,210 Cr, and the latest quarter had sales of ₹5,588 Cr with net profit of ₹300 Cr. Sales growth of 19.50% and a five-year revenue CAGR of 18.20% suggest a business that can compound, and promoter holding of 59.38% gives me some comfort. That combination points to a sturdy stalwart, possibly with a moat, but the figures do not let me quantify it. But Benjamin Graham taught me to ask what I pay for that quality. At ₹1,298, the P/E is 50, P/B is 8.61, and book value is ₹150.74. The Graham Number is ₹266.07, implying a margin of safety of -425.09%. A DCF intrinsic value of ₹727.11 is also far below the market price. The PEG ratio of 8.31 tells me growth is not cheap enough to justify the multiple. Worse, profit growth is -16.60% even as sales rise, so margins or costs are under pressure. Dividend yield is just 0.92%. FairStock score is 48/100—mixed. EV/EBITDA of -82.17 is odd, so I would inspect it. This is not a bad business. It is a financially strong, low-debt compounder with healthy FCF and sales momentum. But at these prices, Mr. Market is asking me to pay a premium for uncertain profit recovery. I would rather watch it than buy. The price may correct, or profits may inflect; until one happens, the margin of safety is absent. Quality without price discipline is not value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer