Book Partial Profits in Havells India - Kotak

[sunil]

According to Kotak Research, Havells India is fully priced and the Research Team has set a Target price of Rs 580 on the Stock with the following views.

Appliance sales have slowed down; festival season has not been good; companies are showing growth on low base or new product categories. Orient has already established presence in 80 cities across India. Pricing is at par with Philips; the company is trying to differentiate on aesthetics as differentiation on features in mature/competitive product categories is difficult, and
manufacturing is outsourced to non-exclusive vendors (80% domestic; 20% China.

So if you are Holding Havells India, you can book Partial profits and HOLD the rest and maybe ADD Later around Rs 550 Levels.

[sunil]

JP Morgan has set a Target Price of Rs 700 on Havells India with the following Note

We believe HAVL remains one of the best plays on branded consumer electrical products and appliances demand in India. Near term pick up in Sylvania margins bodes well for valuations. We cut our FY13E EPS by 7.5% to factor in one-time interest payment by Sylvania on its debt refinancing, largely maintaining our FY14-FY15 estimates. We increase our PT to Rs700 (from Rs650) now rolled forward to Sep-13 PT and still based on 15x Sep-14E P/E.

So Book Profits based on Kotak's Recommendation or Stay Invested in JP Morgan's Reco is Investor's discretion. Wjhat I'd suggest is, wait until the markets get into correction mode if they do, then Book Profits then.