Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Havells India Ltd. indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal in the current market environment.
Quality Assessment: Strong Operational Fundamentals
As of 28 December 2025, Havells India Ltd. maintains an excellent quality grade, reflecting robust operational capabilities and a solid business model. The company’s product portfolio in the Electronics & Appliances sector continues to command a significant market presence, supported by a large-cap market capitalisation that underscores its established position. Despite recent challenges, the quality of earnings and management effectiveness remain commendable, which is a positive sign for long-term investors.
Valuation: Fair but Not Compelling
The stock’s valuation grade is currently rated as fair. This suggests that while Havells India Ltd. is not excessively overvalued, its price does not offer a significant margin of safety or attractive entry point based on prevailing market multiples. Investors should note that the fair valuation reflects a balance between the company’s earnings potential and the risks posed by recent financial trends and market conditions.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend: Flat Performance Amidst Headwinds
The financial grade for Havells India Ltd. is currently flat, indicating a lack of significant growth or deterioration in recent quarters. As of 28 December 2025, the company reported subdued quarterly results for September 2025, with net sales at ₹4,779.33 crores, reflecting a decline of 10.8% compared to the previous four-quarter average. Profit before tax (excluding other income) stood at ₹328.33 crores, down 18.7%, while profit after tax was ₹319.00 crores, a decrease of 9.6% over the same period.
These figures highlight the challenges Havells faces in sustaining growth momentum amid a competitive and evolving market landscape. The flat financial trend suggests that the company is currently navigating a period of consolidation rather than expansion.
Technical Analysis: Bearish Momentum
From a technical perspective, Havells India Ltd. holds a bearish grade. The stock has underperformed key benchmarks such as the BSE500 index over the past one year and three years. Specifically, as of 28 December 2025, the stock has delivered a negative return of -15.19% over the last year and -15.29% year-to-date, signalling downward pressure on the share price.
Shorter-term price movements also reflect this trend, with a 3-month decline of 5.83% and a 6-month drop of 9.93%. The one-day change on the latest trading session was -0.42%, indicating continued volatility. This bearish technical outlook suggests that market sentiment remains cautious, and investors should be wary of potential further downside risks.
Stock Performance in Context
Havells India Ltd.’s recent performance has lagged behind broader market indices and sector peers. The stock’s underperformance relative to the BSE500 index over multiple time frames underscores the challenges it faces in regaining investor confidence. While the company’s excellent quality grade offers some reassurance, the combination of flat financial trends, fair valuation, and bearish technical signals justifies the current 'Sell' rating.
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What This Means for Investors
For investors, the 'Sell' rating on Havells India Ltd. serves as a cautionary signal. It suggests that the stock currently faces headwinds that may limit near-term upside potential. The excellent quality of the company’s operations is tempered by a lack of financial growth and unfavourable technical trends, which together imply that the risk-reward balance is skewed towards downside risk at present.
Investors holding Havells shares may consider reviewing their portfolio allocations in light of these factors, while prospective buyers might wait for clearer signs of financial recovery and technical strength before initiating positions. Monitoring upcoming quarterly results and market developments will be crucial to reassessing the stock’s outlook.
Summary
In summary, Havells India Ltd. is rated 'Sell' by MarketsMOJO as of the rating update on 13 October 2025. The current analysis, reflecting data as of 28 December 2025, highlights an excellent quality grade but fair valuation, flat financial trends, and bearish technical indicators. These combined factors underpin the cautious recommendation, signalling that investors should approach the stock with prudence in the current market environment.
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