Havells India Ltd.
ISIN: INE176B01034 • Market Cap: ₹80,202 Cr
The 5-Pillar Quality Audit for Havells India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (9.1%), Return on Capital Employed (22.7%), and equity compounding (17.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (8.3%) and 3Y PAT CAGR (8.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 49.11 vs PEG of 4.35 and Dividend Yield of 0.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 59.4%, backed by 34.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 22.7%)
Havells India Ltd. generates exceptional return on capital employed of 22.7%, reflecting pricing power and competitive moat.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (34.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 34.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Durables)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.
Quantitative Strategy Eligibility
Checking HAVELLS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare HAVELLS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Havells India Ltd. (HAVELLS)Current | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Berger Paints India Ltd. (BERGEPAINT) | 63/100 | ₹62,340 Cr | 51.24 | 16.5% | 0.02 | View |
Frequently Asked Questions: Havells India Ltd.
Q:What is the 5-Pillar Fundamental Score for Havells India Ltd. (HAVELLS)?
Havells India Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (70/100), Financial Health (89/100), Growth (55/100), Valuation (43/100), and Ownership Quality (85/100).
Q:Is HAVELLS fundamentally strong for long-term investment?
Yes, HAVELLS exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 17.9% and a debt-to-equity ratio of 0.00.
Q:Does HAVELLS pass the Coffee Can Investing filter?
Yes! HAVELLS satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does HAVELLS compare against other Consumer Durables peers?
Within India's Consumer Durables sector, HAVELLS trades at a P/E of 49.11 and generates an ROCE of 22.7%. Compare its 5-Pillar score of 70/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.