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Investing.com - BofA Securities has upgraded Havells India (NSE:HVEL) (NSE:HAVL) stock rating from Underperform to Buy, while raising its price target to INR1,785.00 from INR1,400.00.
The upgrade comes as BofA Securities believes the earnings downgrade cycle for Havells could be largely behind, with the street having already cut earnings estimates by 19-16% since September 2024.
BofA Securities had previously maintained a cautious stance on Havells due to capacity bottlenecks and rising competition in cables, sluggish progress in Lloyd’s profitability, and weak summer performance.
The firm now sees these concerns as largely addressed, noting that with valuations down 22% from peak, the risk-reward balance appears favorable for investors.
In the medium term, BofA Securities believes Havells is well positioned to benefit from penetration-led growth in air conditioners and strong momentum in wires and cables.
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