Havells was originally in the lighting and electrical equipment business and later diversified into white goods and cooling products with the acquisition of Lloyds Electric Consumer Business. The pressure in this quarter came from the Lloyds business where the operating margins actually fell by 700 bps and that put pressure on Havells overall. Its profits in the quarter were lower by 8.4% at Rs.207 crore and that was largely due to the Lloyds acquisition. Revenues continued to grow by 9% in the current quarter too.

The overall impact on the margins was just 2.7% since the other businesses (outside of Lloyd) have given good returns so it saved the day for Havells. The stock has been on an uptrend and has also sustained valuations over longer periods of time. It has a huge distribution network across India and that is an advantage that is likely to sustain. You can actually hold on to the stock since you appear to have got in at a very good and attractive price.