Motilal Oswal recommended Neutral rating on Havells India with a target price of Rs 1490 in its research report dated March 04, 2026.

Motilal Oswal’s research report on Havells India

Our recent interaction with Havells India’s (HAVL) management indicated that: 1) in C&W, raw material inflation remains a headwind, and margins are likely to contract QoQ as the benefit of lower-cost inventory unwinds in 4Q; 2) capacity utilization is mixed, with wires operating at ~65% and cables at >90%; the upcoming cable plants in Rajasthan and Bengaluru (by Sep’26) will support medium-voltage expansion and entry into HT categories; 3) the RAC business is witnessing subdued demand, with secondary sales yet to recover despite the normalization of channel inventory; a delayed summer and cautious dealer sentiment remain near-term constraints; 4) ECD portfolio remained stable with selective price hikes offsetting inflation; BLDC-led premiumization continues (~25– 30% of fan revenues) with seasonal channel inventory build-up; 5) solar is emerging as a new growth lever, with strengthened leadership and favorable industry structure enabling end-to-end residential solutions amid rising investment momentum.

We expect HAVL to report a revenue/EBITDA/PAT CAGR of 14%/22%/23% over FY26-28. We estimate OPM to reach 10.8% in FY28 vs. 9.5% in FY26. The stock trades fairly at 45x/37x FY27/28E EPS. We value the stock at 42x FY28E to arrive at our TP of INR1,490. Reiterate a Neutral rating.

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