Havells India Limited
Havells India Limited Fundamental Analysis
Havells India Limited (HAVELLS.BO) shows moderate financial fundamentals with a PE ratio of 46.60, profit margin of 7.50%, and ROE of 19.44%. The company generates $225.1B in annual revenue with strong year-over-year growth of 16.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HAVELLS.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHAVELLS.BO demonstrates superior asset utilization.
Valuation Score
WeakHAVELLS.BO trades at a premium to fair value.
Growth Score
ExcellentHAVELLS.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHAVELLS.BO maintains a strong and stable balance sheet.
Profitability Score
WeakHAVELLS.BO struggles to sustain strong margins.
Key Financial Metrics
Is HAVELLS.BO Expensive or Cheap?
P/E Ratio
HAVELLS.BO trades at 46.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HAVELLS.BO's PEG of 3.15 indicates potential overvaluation.
Price to Book
The market values Havells India Limited at 8.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.59 times EBITDA. This signals the market has high growth expectations.
How Well Does HAVELLS.BO Make Money?
Net Profit Margin
For every $100 in sales, Havells India Limited keeps $7.50 as profit after all expenses.
Operating Margin
Core operations generate 7.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.44 in profit for every $100 of shareholder equity.
ROA
Havells India Limited generates $11.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Havells India Limited generates limited operating cash flow of $-3.78B, signaling weaker underlying cash strength.
Free Cash Flow
Havells India Limited generates weak or negative free cash flow of $-10.75B, restricting financial flexibility.
FCF Per Share
Each share generates $-17.13 in free cash annually.
FCF Yield
HAVELLS.BO converts -1.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
46.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How HAVELLS.BO Stacks Against Its Sector Peers
| Metric | HAVELLS.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 46.60 | 26.78 | Worse (Expensive) |
| ROE | 19.44% | 1280.00% | Weak |
| Net Margin | 7.50% | -41741.00% (disorted) | Weak |
| Debt/Equity | 0.03 | 0.69 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 8.99 | Neutral |
| ROA | 11.46% | -1505887.00% (disorted) | Strong |
HAVELLS.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Havells India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
129.73%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
99.88%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
82.99%
Industry Style: Cyclical, Value, Infrastructure
High Growth