Industry profile: The infrastructure sector is a crucial driver of the Indian economy. The industry is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. Infrastructure includes power, bridges, dams, roads, and urban infrastructure development. In 2016, India jumped 19 places in World Bank’s Logistics Performance Index (LPI) 2016 to rank 35th amongst 160 countries. Government is a considerable force in the sector. The union budget allocates large amounts of infrastructure, like Rs 16,000 crore (US$2.47 billion), towards the Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme. The scheme aims to achieve universal household electrification in the country. Rs 4,200 crore (US$ 648.75 billion) to increase the Green Energy Corridor Project’s capacity and other wind and solar power projects.
Company Profile: Havells India Ltd is one of India’s largest electrical equipment companies. Founded in 1983, the company manufactures from solar panels to Induction cooktops, electric stoves, street lamps to ceiling fan switches to cables, and electric durables. It is a holding company. The company operates through four segments: Switchgears, Lighting and fixtures, Cables, and Electrical Consumer Durables. The Switchgear segment comprises domestic and industrial switchgear, electrical wiring accessories, industrial motors, pumps, and capacitors. The Lighting and fixture segment includes energy-saving lamps (CFL) and luminaries. The Cables segment comprises domestic cables and industrial underground cables. The Electrical Consumer Durable segment comprises fans, water heaters, and household appliances. Its subsidiaries include Havells Sylvania Brasil Iluminacao Ltda., Havells Sylvania (Thailand) Ltd., Havells USA Inc., Havells Sylvania Iluminacion (Chile) Ltda, Havells International Limited, and Havells Holdings Limited.
Shareholding pattern: BSE Data
Financials and ratios : [table id=136 /]
Prospects: The company’s segment is growing with speed. The household’s average income is increasing, and so is the company’s revenue. So I expect the company to do well in the upcoming days. Yes, there are problems and risks like political risk reduction in income and private investment, but the company is well diversified in its products. There are some questions about the capital investment cycle as govt is not increasing its expenditure. But after the Loksabha election, I expect an uptrend in government CAPEX.
