Havells India - 5% Earnings Cut, Maintain BUY ::Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Havells India

5% Earnings Cut, Maintain BUY

BUY

CMP: Rs360                                        Target Price: Rs450

---

n     Q1FY12 standalone performance below expectations - revenues grew 16.1% yoy to Rs 8bn; EBIDTA margins fall 80 bps to 10.7% & APAT at Rs575 mn, up 7.8% yoy

n     Strong operational performance in Sylvania – delivers EBIDTA margin of 7.3% vs 5.4% in Q1 FY11. Improved product mix and better pricing drives profit growth in Sylvania operations

n     Lowered Ebidta margins assumption by 50 bps and 40 bps in FY12E and FY13E, consequently revised earnings by -5.5% (Rs27.7/Share) and -4.6% (Rs33.1/Share) for FY12E and FY13E

n     Sylvania progress is satisfactory, gunning to achieve 7.5-8.0% annual Ebidta margins- Maintain Buy with revised target price of Rs450/Share