Infinity: Buy Havell's, target Rs 530

Infinity.com Financial Securities, in a reaserch report released on March 26, has revised its recommendation on Havell's India to Buy with a price target of Rs 530.


The report said: "HIL trades at a P/E of 13.7x FY08E consolidated EPS of Rs 32.9. The stock trades at an EV/Sales of 0.7x and EV/EBIDT of 9x FY08 estimates. While the appreciation in stock price adequately captures the immediate benefit of consolidation, valuations should improve as benefits of synergies set in over the next 18-24 months.

"A ramp up in international revenues should help HIL sustain high growth levels without undue strain on its balance sheet. We revise upwards our recommendation to ‘BUY’ with a price target of Rs 530 over a one-year investment perspective as large scale benefits start flowing."

Download here