Havells: 375-395 May Be A Big Hurdle Despite Expected Growth & Deleveraging/MSCI Inclusion

Trading Idea: Havells

CMP: 366

Either sell around 375-385 or on rise 395-405;

TGT: 353/345*-325-315-304-290*-268-255-235*-224-210 (1-3/6M)

TSL> 410

Note: Consecutive closing (3 days) above 410 for any reason, Havells may further rally up to 425*-440-465 in the near to long term (alternative bullish case scenario).

For Havells: Standalone

Q4FY16 TTM EPS: 11.45 (FY16/Actual; including Sylvania stake sale; without this the TTM EPS should be around 8.10).

Projected FWD EPS: 10.40-13.35-17.25 (FY;17-19/Estimated without any stake sale)

Average PE: 22

As par BG metrics & current market parameters:

Present median value may be around: 290 (FY:16/TTM)

Projected fair value might be around: 275-310-355 (FY:17-19/FWD)

 

HAVELLS	EPS	BV	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
Q4FY16/TTM	11.45	49.47	22	274.63	299.86	287.25	299.42	356.95
FY17/FWD	10.4	61.55	22	261.74	285.78	273.76	299.42	356.95
FY18/FWD	13.35	77.35	22	296.55	323.78	310.17	299.42	356.95
FY19/FWD	17.25	96.75	22	337.09	368.05	352.57	299.42	356.95

  Analytical Charts: