Havells India tanks 5% on co's weak demand outlook

India Infoline News Service | Mumbai | October 24, 2017 10:31 IST

Shares of Havells India fell 5% due to company's weak outlook for demand and as brokerages trimmed their earnings estimate post the company's Q2 FY18 results reported on Monday.

Shares of Havells India fell 5% on the company's weak outlook for demand and as brokerages trimmed their earnings estimate post the company's Q2 FY18 results reported on Monday.

The company said the underlying demand growth has been hit by goods and services tax and it is yet to see a recovery in the distribution network, which was hamstrung ahead of GST rollout.

The company’s standalone revenue for the quarter came in at Rs 1,777 crore, registering 14% yoy increase. This was primarily driven by revenue from Lloyd consumer vertical to Rs 269 crore and 15% yoy increase in lighting & fixtures segment to Rs 286 crore in Q2 FY18 vs Rs 249 crore in previous year corresponding quarter.

Havells India Ltd is currently trading at Rs 516, down by Rs 25.65 or 4.74% from its previous closing of Rs 541.65 on the BSE.

The scrip opened at Rs 539 and has touched a high and low of Rs 539 and Rs 513.05 respectively. The stock is currently trading above its 50 DMA.

Havells India Ltd is the leading Fast Moving Electrical Goods (FMEG) Company. It FY17 revenue mix was cable 39%, switchgears 23%, electrical consumer durables 23% and lighting & fixtures 16%. It enjoyed 28% market share in the domestic switchgear segment. LEEL’s 10000 dealer and 500 service centres will provide distribution muscle to Havells India.


***Note: This is a NSE Chart

 

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