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Havells Q1FY22 Conference Call Highlights - Havells Stock Analysis | Invest Yadnya

Havells Q1FY22 Conference Call Highlights

Published on 26 July 2021 Views 76 Comments 0
  • Inventories were high due to covid 2nd wave. It will get normalised during the coming quarters

  • Pricing wrt cables and wires are passed onto the customers immediately. For other product categories the price to pass onto the customers takes a quarter or two. Also, it depends on the competitors pricing mechanism also. Pricing impacts the margins and ultimately the bottom line.

  • The growth in revenue wrt cables and wires of that nearly 35% is due to inflation

  • Pent up demand: Last year due to covid when markets were completely closed, there was pent up demand and hence, Q2 to Q4 saw robust earnings. This year in spite of the second wave, the markets weren’t completely closed. So pent up demand factor doesn’t arise

  • Capex plans will be evaluated wrt the market dynamics

  • Real estate industry has a good bearing on the growth of the company. There are still concerns regarding the same. But some positive action is seen in the industry with few new project launches.

  • Ecommerce and rural segment  of the Havells technical analysis is still at the nascent stage for the company. Havells analysts expect it to grow at a faster rate.

  • Southern India affected the Havells fundamental analysis of the company’s growth in the quarter. Northern region due to prolonged heat waves had a positive impact on the performance of Havells swot analysis.

  • Cashflow was negative in this quarter, primarily due to the inventory getting stacked due to the 2nd wave impact. Inventory of AC and fan was higher as compared to other segments which have average inventory levels.

  • Havells analysis of the industrial and infrastructure segment contributes nearly 27% of the revenues.

  • Lloyd is a growth engine for the company. It will continue to grow in AC, Refrigerators and Washing machine segments.

  • Havells manufactures nearly 90% of its products in an ODM (original design manufacturing) based model. An original design manufacturer is a company that manufactures a product, as specified, that is eventually rebranded by another firm for sale.

  • Last year in Havells share price there was sudden shift in the market share of Havells stock prediction from an unorganized to organized sector primarily due to supply chain disturbances due to covid. It was not the same as the Havells share price history.

  • The Havells stock price and Havells stock analysis continue to be in uptrend due to their distribution, branding and pricing strategies. Further Havells value research and Havells valuation increase needs to be looked into.

  • Exports are mostly of Switch gears. According to Havells stock price history, Havells annual report is planning to capture the other segments also.

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