Havells India Limited is India’s most recognised Fast-Moving Electrical Goods (FMEG) company and a leading power distribution equipment manufacturer, tracing its roots to a Delhi electrical trading shop acquired by Qimat Rai Gupta (QRG) in 1971 and built into a full-line electricals major under the Gupta family, now led by Chairman & Managing Director Anil Rai Gupta. The promoter group holds its stake principally through QRG Investments and Holdings Limited, the promoter holding company.

The company operates across six reporting segments: Cables (flexible, power, LAN, CCTV and speaker cables — the single largest segment at ~39% of FY26 revenue and its fastest-growing line), Lloyd Consumer (air conditioners, washing machines, refrigerators and televisions, acquired in 2017 and run as a distinct sub-brand, ~18% of revenue), Electrical Consumer Durables (fans, water heaters and appliances, ~17%), Switchgears (domestic and industrial switchgear, capacitors, switches, ~12%), Lighting & Fixtures (professional and consumer luminaires, ~7%), and Others (motors, solar, pumps, water purifiers, personal grooming, ~8%).

Havells sells through an extensive multi-tier distribution network of electricians, retailers and exclusive brand stores across urban and semi-urban India, supported by manufacturing facilities in Faridabad, Alwar, Neemrana, Haridwar, Sahibabad, Baddi and Sri City. The company holds CARE’s highest corporate governance rating (CG-1) and is classified almost debt-free, funding growth largely through internal accruals.

Havells has compounded consolidated sales at an 11% CAGR over ten years and 17% over five years, though growth has moderated to a 10% TTM pace amid a cyclical demand slowdown in summer products (fans, air coolers) and pricing pressure in Lloyd. Operating margin has structurally stepped down from a 13–15% band (FY17–FY21) to a 9–10% band since FY23, reflecting the lower-margin Lloyd consumer-durables mix, competitive intensity in cables, and input-cost volatility. Profit growth has nevertheless held up better than margins would suggest (18% TTM), aided by other income and a lower effective tax rate.

The DCF uses a 10-year explicit FCFF forecast starting from FY26 (revenue ₹22,528 Cr, EBITDA margin ~10%), assuming a gradual moderation of revenue growth from 12–13% toward 10% as the base scales, and a gradual recovery in EBITDA margin from ~10% to ~12.5% as Lloyd matures and cables/switchgear operating leverage plays out. Capex is modelled at ~3% of sales tapering marginally, tax at 25%, WACC at 12%, and terminal growth at 5%.

Against listed FMEG/consumer-electricals peers, Havells trades at a premium to pure-play cable makers like Finolex but at a discount to the higher-growth Polycab, and broadly in line with V-Guard. Applying the peer-average P/E (ex-Havells, excluding loss-making outliers) of ~39x to Havells’ TTM EPS of ₹26.05 implies a relative-valuation fair value of roughly ₹1,020–1,030 — close to CMP, underscoring that Havells is priced roughly in line with sector multiples rather than at an outright premium or discount.

Peer figures collated from screener.in and Motilal Oswal peer-comparison data across Aug–Sep 2026 trading sessions and are indicative of relative positioning rather than a single-day snapshot; Crompton, Voltas and Bajaj Electricals’ P/E ratios are distorted by depressed or negative recent earnings.

Havells’ consolidated book value stood at ₹151/share (net worth ₹9,456 Cr, FY26), against which the stock trades at ~7.2x — a large premium typical of an asset-light, brand- and distribution-driven FMEG business rather than a capital-intensive manufacturer. Fixed assets and CWIP together are just ₹5,786 Cr (~39% of the balance sheet), most of the value creation instead sitting in the Havells and Lloyd brands, dealer network and working-capital-funded receivables/inventory, none of which are capitalised on the balance sheet.

NAV therefore acts as a floor rather than a fair-value estimate here: it captures replacement cost of tangible net assets (₹151/share) but materially understates the franchise value of a decades-old, top-of-mind electrical brand with pan-India distribution reach — the gap between CMP and book value is best read as the market’s pricing of brand equity and growth optionality, not overvaluation on its own.

EPV capitalises current, no-growth sustainable earnings power rather than projecting future growth. Using TTM EBIT of ~₹1,703 Cr, a normalised 24–25% tax rate (NOPAT ~₹1,294 Cr) and the 12% WACC used in the DCF (i.e. assuming zero incremental growth or reinvestment), EPV works out to approximately ₹10,783 Cr, or ~₹172/share; adding back net cash takes this to roughly ₹191/share.

The wide gap between EPV (~₹191) and CMP (₹1,088) simply confirms that almost none of Havells’ current valuation is attributable to today’s earnings alone — the market is overwhelmingly paying for future growth and margin recovery. EPV is the most conservative of the six methods here and is weighted lightly in the final verdict for that reason.

Havells’ two businesses have structurally different economics: the core Electricals & FMEG franchise (Cables, Switchgears, ECD, Lighting — ~82% of FY26 revenue) runs healthier, more defensible margins on the strength of brand and distribution, while Lloyd Consumer Durables (~18% of revenue) is a lower-margin, more competitive air-conditioner/appliance business more comparable to Voltas or Blue Star than to core Havells. Valuing each on its own multiple gives a cleaner read than a single blended multiple.

The SOTP fair value of ~₹900/share sits between the conservative DCF/EPV estimates and the peer-multiple-based ₹1,020–1,030, and illustrates that a meaningful part of the valuation gap versus CMP stems from Lloyd — a business that would need to demonstrably re-rate on margin improvement (structurally still sub-5% EBITDA margin) for the SOTP value to close further toward CMP.

Blending DCF (₹674), EPV (₹191), NAV (₹151), Relative Valuation (~₹1,026) and SOTP (₹900) into a weighted fair value of approximately ₹718/share (see Verdict), the following buy zones apply for investors building a position with a margin of safety:

CMP of ₹1,088 already sits inside the Reduce/Trim zone relative to the weighted fair value — existing holders with large unrealised gains may consider trimming into strength rather than adding fresh exposure at current levels.

Cables remains the primary growth engine, riding India’s real-estate and infrastructure capex cycle, the formalisation of an unorganised-to-organised shift under BIS quality norms, and rising demand for data/LAN and solar cabling. Switchgear and Lighting benefit from housing and commercial construction plus energy-efficiency retrofits. Electrical Consumer Durables should see steady premiumisation in fans and appliances. Lloyd, while currently margin-dilutive, is positioned to benefit structurally from India’s still-low room-AC penetration and the PLI-linked push toward local manufacturing, though profitability improvement here is the single biggest swing factor for the stock’s medium-term re-rating. Continued capacity expansion (including at Sri City) supports management’s typical guidance of double-digit consolidated revenue growth over the medium term, contingent on margin recovery materialising in tandem.

Havells is a promoter-controlled company: QRG Investments and Holdings Limited, the Gupta family’s promoter holding vehicle, along with Anil Gupta and Surjit Gupta individually, together account for the bulk of the 59.35% promoter stake. The Life Insurance Corporation of India has historically been the largest individually disclosed domestic institutional holder (~4–5% of equity per past disclosures); beyond this, entity-level fund-house detail (which specific AMCs and FIIs hold how much) was not reliably available from public aggregator sources at the time of writing, so that granular table has been omitted rather than estimated — investors wanting scheme-wise or FPI-wise detail should refer directly to the BSE/NSE shareholding filings.

The clearest ownership trend over the past three years is a steady rotation from foreign to domestic institutional hands — FII holding has nearly halved from 24.2% to 15.9% while DII holding has almost doubled from 9.4% to 18.0% — coinciding with the stock’s ~32% drawdown from its 52-week high. This is consistent with domestic mutual funds and insurers viewing the correction as a buying opportunity in a quality franchise even as global funds have reduced exposure, possibly on relative-valuation or sector-rotation grounds.