Shares of electrical equipment and appliances maker Havells India Ltd. jumped as much as 5 percent on Tuesday after analysts at UBS projected a potential upside of up to 46 percent upside to the stock on expected revival in structural growth.

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UBS upgraded Havells India Ltd to ‘buy’ from its earlier rating neutral and also raised its price target on the stock to Rs 1,900 per share from Rs 1,360 earlier.

Sustained revenue share gains, a higher share of premium products and a turnaround at Lloyd will help Havells move up the growth and profitability curve, according to UBS.

As a result, UBS has upgraded Havells' earnings forecast by 9 percent and 10 percent respectively for financial year 2025 and 2026.

According to the brokerage, Havells' estimated addressable market, which is currently around $25 billion is likely to grow up to $40 billion by 2028, registering a growth of 10 percent per annum.

Havells India is one of the leading electrical equipment and appliance makers in the country. It owns consumer goods brands such as Standard, Lloyd and Crabtree.

The company posted a 10 percent growth in net revenue to Rs 4,850 crore in the March quarter of financial year 2023 against Rs 4,417 crore in the year ago period.

Operating profit or EBITDA, as well as net profit, both rose by 2 percent each during the March quarter.

The company will announce its financial results for the April-June quarter of financial year 2024 on Thursday, July 20.

Shares of Havells India are trading 4.4 percent higher at Rs 1,356.20. The stock is up nearly 24 percent on a year-to-date basis.

First Published:Jul 18, 2023 11:17 AM IST