Havells India Ltd. Stock Falls to 52-Week Low of Rs 1295.65

Recent Price Movement and Market Context

On 21 Jan 2026, Havells India Ltd. touched an intraday low of Rs.1295.65, closing with a day’s loss of 3.30%, underperforming the Electronics & Appliances sector by 0.53%. This decline extends a two-day losing streak during which the stock has fallen nearly 10% cumulatively. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

The broader market environment has also been unfavourable. The Sensex opened 385.82 points lower and closed down 373.66 points at 81,420.99, a 0.92% decline. The index is currently trading below its 50-day moving average, although the 50DMA remains above the 200DMA. Notably, the Sensex has experienced a three-week consecutive fall, losing 5.06% in this period. The Cable segment, closely related to Havells’ industry, has also seen a decline of 2.68%, indicating sector-wide pressures.

Financial Performance and Valuation Metrics

Havells India’s one-year stock performance stands at -17.44%, contrasting with the Sensex’s positive 7.36% return over the same period. The stock’s 52-week high was Rs.1712.95, highlighting the extent of the recent decline. The company’s financial results for the quarter ending December 2025 were largely flat, with a Profit After Tax (PAT) of Rs.333.93 crore, down 8.7% compared to the previous four-quarter average.

Return on Capital Employed (ROCE) for the half-year period is at a low of 22.39%, while Return on Equity (ROE) stands at 16.9%. The company’s cash and cash equivalents have decreased to Rs.1,461.65 crore for the half-year, reflecting a tighter liquidity position. Despite these figures, Havells maintains a low average Debt to Equity ratio of zero, indicating a conservative capital structure.

Valuation metrics suggest the stock is trading at a Price to Book Value of 9.7, which is considered expensive relative to its own historical valuations but broadly in line with peer averages. The Price/Earnings to Growth (PEG) ratio is elevated at 6.7, signalling that the stock’s price may not be fully supported by its earnings growth rate, which has been 8.4% over the past year.

Long-Term and Sectoral Performance

Over the last three years, Havells India has underperformed the BSE500 index, continuing a trend of below-par returns in both the near and long term. The company’s market capitalisation stands at approximately Rs.84,303 crore, making it the second largest entity in the Electronics & Appliances sector after Polycab India. Havells accounts for 30.40% of the sector’s market cap and contributes 24.34% of the industry’s annual sales, which total Rs.22,366.13 crore.

Net sales have grown at a compound annual growth rate of 19.09%, indicating healthy top-line expansion despite recent stock price pressures. Institutional investors hold a significant 34.67% stake in the company, reflecting confidence from entities with extensive analytical resources.

Current Ratings and Market Sentiment

MarketsMOJO has downgraded Havells India Ltd. from a Hold to a Sell rating as of 20 Jan 2026, reflecting concerns over the company’s recent performance and valuation metrics. The Mojo Score currently stands at 38.0, categorised as Sell, with a Market Cap Grade of 1, indicating a cautious stance on the stock’s near-term prospects.

The stock’s recent underperformance relative to the sector and benchmark indices, combined with flat quarterly results and a decline in profitability, have contributed to this rating adjustment. The stock’s consecutive declines and breach of key moving averages further underline the subdued market sentiment.

Operational and Financial Highlights

Despite the recent price decline, Havells India demonstrates strong management efficiency, with a reported ROE of 18.25%, which is a positive indicator of the company’s ability to generate returns on shareholder equity. The company’s low debt profile further supports its financial stability, reducing risk associated with leverage.

However, the decline in cash and cash equivalents to Rs.1,461.65 crore and the dip in quarterly PAT highlight some pressures on liquidity and profitability. The flat results reported for December 2025 and the relatively low ROCE of 22.39% for the half-year period suggest that the company is currently facing challenges in translating sales growth into proportional profit gains.

In the context of valuation, the stock’s Price to Book ratio of 9.7 and PEG ratio of 6.7 indicate that the market is pricing in expectations that may not be fully supported by recent earnings growth, which has been modest at 8.4% over the past year.

Sectoral and Market Influences

The Electronics & Appliances sector has experienced downward pressure recently, with the Cable segment falling by 2.68%. Havells India’s share price movement appears to be influenced by these sectoral trends as well as broader market weakness, as evidenced by the Sensex’s three-week decline and trading below its 50-day moving average.

While the Sensex’s 50DMA remains above the 200DMA, indicating a longer-term positive trend, the current trading below the 50DMA reflects short-term caution among investors. Havells’ stock price movement is consistent with this environment, showing sensitivity to both sectoral and market-wide developments.

Summary of Key Metrics

To summarise, Havells India Ltd. currently trades at Rs.1295.65, its lowest level in 52 weeks, down from a high of Rs.1712.95. The stock’s recent performance includes a 9.97% decline over two days and a one-year return of -17.44%. Financially, the company posted a PAT of Rs.333.93 crore for the latest quarter, down 8.7%, with ROCE at 22.39% and ROE at 16.9%. The company maintains a low debt profile and has grown net sales at 19.09% annually. Institutional holdings remain robust at 34.67%, and the company holds a significant market share within its sector.

These factors collectively provide a comprehensive view of Havells India Ltd.’s current market position and recent stock price behaviour, reflecting a period of adjustment amid sectoral and market pressures.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →