Cautious outlook may keep Havells tangled up

Stock of electrical firm under pressure after management commentary

- RAM PRASAD SAHU

The stock of Havells India, the country's largest listed consumer electrical and durables company, was down 3 per cent on Wednesday in a bullish market. Though the company delivered on revenue and operating profit in Q4FY25, the stock was the biggest loser on the BSE 100. The negative sentiment was due to the company management's cautious commentary on the outlook for cooling products. Some brokerages have cut their earnings estimates and others slightly increased it.

The company's performance in Q4 was robust but some product segments were weak. Revenue improved 20 per cent in Q4 year-on-year (Y-o-Y), aided by a 21.2 per cent growth in cable and wire business and a 39.5 per cent jump for Lloyd, the home appliances and electronics brand of the company, on a low base. Consumer durables, switchgear and lighting segments disappointed, delivering 9.4 per cent, 6.2 per cent and 0.5 per cent growth, respectively.