Havells India Ltd. is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Havells India Ltd. indicates a balanced view on the stock, suggesting that investors should maintain their existing positions rather than aggressively buying or selling. This rating reflects a moderate outlook where the stock is expected to perform in line with the broader market or sector averages over the near term. It is a signal for investors to carefully monitor the company’s developments and market conditions before making significant portfolio changes.

Quality Assessment: Strong Fundamentals Underpin Stability

As of 09 January 2026, Havells India Ltd. demonstrates excellent quality metrics. The company boasts a robust long-term growth trajectory, with net sales expanding at an annualised rate of 20.77% and operating profit growing at 15.58%. This consistent growth underscores the firm’s ability to generate sustainable revenue and earnings over time.

Moreover, Havells maintains a very low debt profile, with an average debt-to-equity ratio of zero, highlighting its conservative capital structure and limited financial risk. The company’s return on capital employed (ROCE) averages an impressive 32.27%, signalling efficient utilisation of capital to generate profits. These quality indicators contribute positively to the stock’s overall assessment and support the 'Hold' rating by reflecting a fundamentally sound business.

Valuation: Fairly Priced Relative to Peers

Currently, Havells India Ltd. is valued fairly in the market. The stock trades at a price-to-book (P/B) ratio of approximately 10.7, which aligns with its sector peers and historical valuation ranges. This suggests that the market is pricing the company’s shares in line with its intrinsic worth, neither offering a significant discount nor a premium.

The company’s return on equity (ROE) stands at 16.9%, indicating reasonable profitability for shareholders. Despite the stock delivering a negative return of -7.37% over the past year as of 09 January 2026, the company’s profits have grown by 3.7% during the same period. The price/earnings to growth (PEG) ratio is notably high at 17.5, which may reflect market expectations of slower earnings acceleration or a premium for stability. This valuation profile supports a cautious stance, consistent with the 'Hold' recommendation.

Financial Trend: Recent Results Show Flat to Slight Decline

The latest quarterly results, as of September 2025, reveal some softness in Havells’ financial performance. Net sales for the quarter stood at ₹4,779.33 crores, marking a decline of 10.8% compared to the previous four-quarter average. Profit before tax excluding other income (PBT less OI) fell by 18.7% to ₹328.33 crores, while net profit after tax (PAT) decreased by 9.6% to ₹319.00 crores.

These flat to slightly negative trends in recent quarters suggest that while the company’s long-term fundamentals remain strong, near-term challenges persist. This financial trend contributes to the tempered outlook embedded in the 'Hold' rating, signalling investors to watch for signs of recovery or further deterioration in upcoming quarters.

Technical Outlook: Mildly Bearish but Stabilising

From a technical perspective, Havells India Ltd. currently exhibits a mildly bearish stance. The stock’s price movements over the past six months show a slight decline of 0.92%, with a one-year return of -7.37% as of 09 January 2026. However, shorter-term trends are more positive, with gains of 1.67% on the latest trading day, 4.91% over the past week, and 6.43% in the last month.

This mixed technical picture suggests some stabilisation after previous weakness, but not yet a clear bullish breakout. The mildly bearish technical grade supports a cautious approach, reinforcing the 'Hold' rating as investors await more definitive price action signals.

Institutional Confidence and Market Position

Havells India Ltd. benefits from strong institutional backing, with 34.67% of its shares held by institutional investors. These entities typically possess greater analytical resources and market insight, which can provide a stabilising influence on the stock. Their significant holdings reflect confidence in the company’s long-term prospects despite recent short-term fluctuations.

The company is classified as a large-cap stock within the Electronics & Appliances sector, further underscoring its established market position and relative stability compared to smaller or more volatile peers.

What This Rating Means for Investors

For investors, the 'Hold' rating on Havells India Ltd. suggests maintaining current positions while monitoring the company’s performance closely. The excellent quality metrics and strong institutional support provide a solid foundation, but the fair valuation and recent flat financial trends counsel caution.

Investors should consider the stock as a stable component of a diversified portfolio rather than a high-growth or speculative opportunity at this time. The mildly bearish technical signals imply that upside momentum is limited in the short term, and any significant price appreciation may depend on improved quarterly results or broader market conditions.

Overall, Havells India Ltd. presents a balanced risk-reward profile, with its 'Hold' rating reflecting a prudent stance that favours capital preservation and steady income over aggressive capital gains.

Summary of Key Metrics as of 09 January 2026

- Market Capitalisation: Large-cap

- Mojo Score: 54.0 (Hold)

- Quality Grade: Excellent

- Valuation Grade: Fair

- Financial Grade: Flat

- Technical Grade: Mildly Bearish

- 1 Day Return: +1.67%

- 1 Week Return: +4.91%

- 1 Month Return: +6.43%

- 6 Month Return: -0.92%

- 1 Year Return: -7.37%

- Institutional Holdings: 34.67%

Investors should weigh these factors carefully when considering Havells India Ltd. as part of their portfolio strategy.

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