Havells India’s stock is experiencing a notable decline of 3% despite an overall positive market climate. This downturn is largely attributed to profit booking following a substantial 13% increase in share price over the last month. Fortunately for investors, leading brokerages such as Nomura and Nuvama remain optimistic, projecting significant returns for the stock over the upcoming year.

Nomura’s Continued Confidence in Havells India

Nomura has reaffirmed its Buy rating on Havells India, though it has slightly adjusted its target price from Rs 1,943 to Rs 1,873 per share. This new target suggests a potential upside of nearly 16% from the current trading levels. The adjustment stems from rising competition within the cable and wire sector, but Nomura maintains a positive outlook based on an earnings assumption of 48x FY27 EPS. The brokerage anticipates that Havells will sustain its valuation premium within its historical trading range of 40-60x.

• Currently, the stock trades at 44x FY27F EPS, which Nomura finds appealing given the company’s growth forecast.
• They project a 15-16% revenue growth (excluding Lloyd) through FY26-27, driven by strong demand in cables and a rebound in the ECD segment.
• Nomura also reassured that improving profitability could alleviate concerns surrounding structural profit reductions, with expectations of 13.1% and 13.6% margins for FY26 and FY27, respectively.

Nuvama’s Positive Outlook for Havells India

Nuvama also maintains a Buy rating, setting a target price of Rs 1,890 per share. The brokerage highlights Havells India’s consistent performance, showcasing resilience through challenges like profitability in Lloyd and fluctuations in raw material costs for cables. They foresee the company achieving steady performance, projecting revenue, EBITDA, and PAT growth of 16% and 20% over FY25-28, valuing the stock at 52x FY27 EPS.

• Nuvama emphasizes that consumption recovery is crucial. However, they note that the delayed onset of summer this year may impact primary sales in the RAC category during Q1FY26.
• Havells is focused on expanding its capacities and enhancing emerging categories, with the cable segment showing robust demand despite potential margin impacts from raw material price volatility.
• Nuvama believes that Lloyd remains a key growth driver, as the company works on calibrating revenue growth, market share, and margin improvement through cost optimization strategies.

Analyzing Havells India’s Stock Performance

Over the past month, Havells India shares have surged nearly 10%. However, the stock has encountered challenges in 2025, showing a 4% decline due to a sharp correction between February and March. Over the last six months, the stock’s performance reflects an 8% decrease, indicating a volatile trading environment.

Investors should remain vigilant and consider these expert insights when evaluating Havells India’s stock potential. As the company navigates through competitive pressures and market fluctuations, its strategic investments and growth initiatives will be key to its future trajectory.