During Tuesday’s trading session, the shares of a leading Fast Moving Electrical Goods (FMEG) company surged by nearly 3 percent to Rs. 1,664.1 on BSE, after the company announced the set-up of a new manufacturing facility in Rajasthan with an investment of Rs. 480 crores.
With a market cap of Rs. 1.03 lakh crores, at 02:09 p.m., the shares of Havells India Limited were trading in the green at Rs. 1,648.05, up by about 1.8 percent, as compared to its previous closing price of Rs. 1,617.7.
What’s the news:
According to the latest filings with the stock exchanges, Havells India Limited will be setting up a new facility for manufacturing refrigerators in Ghiloth, Rajasthan.
The planned expansion will add a capacity of 14 lakh units, with an investment of about Rs. 480 crores, to be funded through internal accruals. The proposed capacity is expected to be operational by Q2 FY27. The move is aimed at capitalizing on the advantages of backward integration and economies of scale.
The capacity addition was initially proposed on 14th August 2023, when Havells India Limited informed the stock exchanges about exploring the possibility of establishing a new refrigerator manufacturing facility in Rajasthan.
At that time, it was stated that the company would need to invest approximately Rs. 350 crores, with the planned capacity to be added by Q1 FY26.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 16.4 percent, rising from Rs. 3,900 crores in Q2 FY24 to Rs. 4,539 crores in Q2 FY25.
Likewise, during the same period, the company’s net profit increased from Rs. 249 crores to Rs. 268 crores, representing a marginal growth of around 7.6 percent YoY.
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Key Financial Ratios:
In terms of key financial metrics, Havells India has a Return on Equity (RoE) of 18 percent and a return on capital employed (RoCE) of 24.4 percent. Additionally, the company’s debt-to-equity ratio stands at 0.04.
Stock Performance:
The stock has delivered positive returns of nearly 29.5 percent in one year, while around 11.3 percent of negative returns in the last six months. So far in 2024, the shares of Havells India have given positive returns of about 21.4 percent.
About the company:
Havells India Limited is a consumer electrical/electronics and power distribution equipment manufacturer with products ranging from switchgear, cable, motor, pump, solar product, fan, power capacitor, LED lamp, AC, television, washing machine, refrigerator etc., covering entire range of household, commercial and industrial electrical needs.
Written by Shivani Singh
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