Havells India Limited

HAVELLS.BO•electrical-equipment-parts

Current Price

1,586.85INR

per share

Fair Value

415.23INR

Overvalued

282.2%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 13.30%, higher than industry average of 10.37%.

Growth Trajectory

Profitability

In the growth phase company makes 8.85% profit on every dollar of sales, higher than industry average of 7.29%.

Profitability Trajectory

Risk Profile

Investors expect at least 8.40% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

229.92B INR

Equity Value

260.32B INR

FCF Yield

10.46%

Average ROIC

20.73%

Cost of Capital

8.57%

P/E Ratio

67.65x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	212.49B INR	184.73B INR
Operating Income or EBIT	19.87B INR	17.60B INR
Interest Expense	440.50M INR	457.10M INR
Book Value Of Equity	83.24B INR	74.47B INR
Book Value Of Debt	3.19B INR	3.03B INR
Cash and Marketable Securities	33.58B INR	30.22B INR
Number of Shares Outstanding	626.94M	--
Minority interests	0 INR	0 INR
Current Stock Price	1586.85 INR	--
Effective Tax Rate	26.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+4.66%

15.02%Company

10.36%Industry

Above Industry

Operating Margin

+2.06%

9.35%Company

7.29%Industry

Above Industry

Havells India Limited demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 80% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	184.36B INR	Add
Present Value (Cash Flow Over Next 10 Years)	45.56B INR	Add
Value of Operating Assets	229.92B INR	Sub-total
Debt	3.18B INR	Subtract
Minority Interests	—	Subtract
Cash	33.58B INR	Add
Value of Equity	260.32B INR	Sub-total
Number of Shares	626.94M shares	Divisor
Estimated Value per Share (Fair Value)	415.22 INR	Total
Current Market Price	1.58K INR	Reference

Financial Projections

Total FCF Present Value

45.56B INR

Avg Revenue Growth

9.48%

Avg Operating Margin

8.73%

Avg ROIC

20.73%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	245.25B INR	277.87B INR	314.83B INR	356.71B INR	404.15B INR	450.91B INR	495.28B INR	535.45B INR	569.61B INR	596.10B INR	623.82B INR
Growth Rate	15.42%	13.30%	13.30%	13.30%	13.30%	11.57%	9.84%	8.11%	6.38%	4.65%	4.65%
PROFITABILITY
Operating Income	22.93B INR	25.04B INR	27.84B INR	30.95B INR	34.38B INR	38.36B INR	42.14B INR	45.55B INR	48.46B INR	50.71B INR	53.07B INR
Operating Margin	9.35%	9.01%	8.84%	8.67%	8.50%	8.50%	8.50%	8.50%	8.50%	8.50%	8.50%
EBIT (1-tax)	16.97B INR	18.53B INR	20.60B INR	22.90B INR	25.44B INR	28.08B INR	30.51B INR	32.62B INR	34.31B INR	35.50B INR	37.15B INR
CASH FLOW
Reinvestment	15.26B INR	17.29B INR	19.59B INR	22.20B INR	21.88B INR	21.25B INR	19.24B INR	16.36B INR	12.68B INR	13.27B INR	19.45B INR
Free Cash Flow	1.70B INR	1.24B INR	1.01B INR	703.02M INR	3.56B INR	6.82B INR	11.26B INR	16.25B INR	21.62B INR	22.22B INR	17.69B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	418.40B INR
Present Value	1.57B INR	1.05B INR	795.42M INR	509.23M INR	2.38B INR	4.20B INR	6.39B INR	8.48B INR	10.37B INR	9.79B INR	—
EFFICIENCY
ROIC	32.11%	27.21%	24.13%	21.81%	20.00%	18.83%	17.91%	17.20%	16.66%	16.23%	8.88%
Cost of Capital	8.39%	8.39%	8.39%	8.39%	8.39%	8.49%	8.58%	8.68%	8.78%	8.88%	8.88%
Sales/Capital	2.13x	2.13x	2.13x	2.13x	2.13x	2.08x	2.08x	2.08x	2.08x	2.08x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)