Havells India surges to a 52-week high on UBS ‘Buy’ recommendation!

Indian frontline indices started the trading session with a strong performance, marching confidently towards a 52-week high on the bourses. Notably, the real estate, power, utilities, and capital goods sectors led the way as the top performers, each posting gains of over 1%. Meanwhile, BSE Healthcare and BSE Information Technology were the only sectors experiencing losses.

While the broader indices exhibited stronger performance compared to the main indices, investor confidence was also evident in large-cap stocks. Havells India Ltd took the spotlight as the leading gainer among BSE Largecap pack, keeping large-cap bulls active.

On an intraday basis on Friday, shares of Havells India Ltd soared more than 6%, reaching a 52-week high of Rs 1,457.60 per share on the BSE. The surge in buying interest can be attributed to a ‘buy’ recommendation from UBS, which has set a target price of Rs 1,900 per share for the company’s stock. With fluctuating temperatures driving electricity demand to its peak in India during August 2023, power sector stocks are experiencing a significant surge, fostering optimism within the power industry.

Havells India operates in the manufacturing sector, specializing in the production of electrical and consumer goods. The company boasts an extensive product line-up encompassing various electrical equipment, lighting solutions, fans, home appliances etc.

Considering the company’s quarterly performance, on a consolidated basis it reported a growth of 13.88% from Rs 4,244.46 crore registered in Q1FY23, recording total revenue of Rs 4,833.80 crore in Q1FY24. It has reported operating profit growth of 14.1%. Compared to the same quarter last year, the net profit for the first quarter of FY24 surged 18.06%, from Rs 243.16 crore to Rs 287.07 crore. The shares have yielded a considerable 11% return over the past year.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.