InvestorQ : Havells has fallen by more than 10% in the last couple of months. Can I buy the stock at these prices after the results announcement?
Debbie Mascarenhas made post

Havells has fallen by more than 10% in the last couple of months. Can I buy the stock at these prices after the results announcement?

Answer
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Crowny Pinto answered.
1 year ago


Havells actually missed its estimates for the June quarter and reported a 16% fall in net profits. The big hit came from the switchgear segment which is directly linked to the construction industry. Since construction activity has seen a distinct slowdown in the last few months, the impact has been felt on the performance of Havells in the June quarter. The net profits for the quarter fell by 16.3% to Rs.177 crore for the June quarter. During the same period, the total revenues of the company grew by 4.5% to Rs.2717 crore.

The stock quotes at rich valuations of above 51X P/E but that is the kind of premium that the company has always commanded. The company performance was principally hit by the switchgear segment and that should pick once the construction activity picks up in India. However, the correction of 10% in the last few months offers a good margin of safety. Havells remains a clear leader in the consumer space and you can look to accumulate more of the stock at lower levels.