1. At a Glance
Havells India is the ₹95,000-cr consumer durables titan making cables, switches, fans, appliances and more from Kolkata to California. Over five years, revenues have grown at ~17% CAGR, ROCE hovers at 25%, and net debt remains negligible. Investors debating whether this wiring wizard is still wired for wealth.

2. Introduction with Hook
Imagine you’re rewiring your home and discover your electrician swapped your plain switch for a Havells modular masterpiece. That’s the kind of market power Havells wields—a portfolio spanning 20,000 SKUs, from submersible cables to air purifiers. But at a P/E north of 60, is this growth story still plugged into the mains or at risk of a short circuit?

3. Business Model (WTF Do They Even Do?)

• Manufacture and market Fast Moving Electrical Goods (FMEG): fans, water heaters, air coolers, lighting, appliances.
• Power distribution equipment: cables, capacitors, motors, switchgear.
• Niche forays into solar rooftop solutions, EV chargers and IoT-enabled “smart living” devices.
• Distribution: 100+ country exports, 5,000+ distributor network, 3mn retail touchpoints in India.

4. Financials Overview – Profit, Margins, ROE, Growth

• Revenue (FY21–25 CAGR): 17%
• EBITDA margin (TTM): ~10%
• ROE (TTM): 19%
• ROCE (TTM): 25%
• Net profit (FY25): ₹1,470 cr vs ₹1,072 cr in FY24 (+37%)
• EPS (FY25): ₹23.48; up from ₹20.28 in FY24

5. Valuation – Is It Cheap, Meh, or Crack?

• Current P/E: ~65x FY25 EPS; P/B: 11.5x
• Industry average P/E: 35x; P/B: 4–5x
• Fair Value Range: ₹650–₹825 (30–35x FY25 EPS = ₹704–₹821)
• Rationale: premium for brand and distribution, but stretched versus historical averages.

6. What’s Cooking – News, Triggers, Drama

• May 2025: Invested ₹715 cr to expand Alwar cable capacity by Sept 2026.
• Apr 2025: Committed ₹600 cr to Goldi Solar (renewables push).
• May 2025: LoI for 50 acres in YEIDA for electronics manufacturing.
• Planned ₹7–10 cr capex in EV charger biz—timing crucial as EV adoption climbs.

7. Balance Sheet – How Much Debt, How Many Dreams?

• Borrowings (FY25): ₹319 cr vs reserves of ₹8,261 cr (net debt negligible)
• Total assets: ₹13,809 cr; equity: ₹8,324 cr
• Working capital: modest increase in receivable/inventory days, but cycle stable at ~47 days
• Strong liquidity: cash from operations ₹1,515 cr; minimal interest cost

8. Cash Flow – Sab Number Game Hai

• OPCF (FY25): ₹1,515 cr
• Capex (FY25): ₹305 cr (renewable and capacity expansion)
• FCF: ₹1,210 cr (robust cover for dividends and buybacks)
• Dividend payout (FY25): ~43%; consistent with 39–44% over past five years

9. Ratios – Sexy or Stressy?

10. P&L Breakdown – Show Me the Money

• Sales mix (H1 FY25): Cables 32%, Switchgear 15%, Fans & Appliances 20%, Lighting 18%, Others 15%
• Gross margin (TTM): ~36% (improved product mix)
• Other income (FY25): ₹288 cr (vs ₹249 cr in FY24)
• Interest & depreciation rising modestly due to factory expansions

11. Peer Comparison – Who Else in the Game?

12. Miscellaneous – Shareholding, Promoters

• Promoter holding: 59.4%
• FIIs: 22.3%; DIIs: 12.6%; public: 5.5%
• Key Managerial Personnel:
  • Anil Rai Gupta, Chairman
  • Anuj Sharma, Managing Director & CEO
  • Pawan Kumar Singh, Chief Financial Officer

13. EduInvesting Verdict™
Havells India delivers consistent growth, pristine balance sheet and a brand arsenal unmatched in FMEG. But at ~65x earnings, valuation feels like a high-voltage gamble. If you believe in its renewable pivot and EV charger bet, the wiring wizard remains wired to win. Otherwise, it’s worth waiting for a market power cut before plugging in.

Tags: Havells India, 5-Year Recap, FMEG, Electrical Goods, Fair Value, EduInvesting

✍️ Written by Prashant | 📅 12 July 2025