Nomura Financial Advisory and Securities has maintained 'Buy' on Havell's India with target price of Rs 304 with current market price (CMP) of Rs 286 in its report.
Commenting on the investment rationale, Nomura said, ''Havell's standalone 4QFY15 earnings missed our as well as the Street's expectations by 5%/3%, as sales declined in switchgears and lighting and fixtures.
EBITDA margins at 13.3% were below our estimate of 13.6% as well as consensus of 14.0%. This was due to a charge of Rs 177.1 million for the quarter and Rs 276.9 million for FY15, relating to a full and final settlement with a customer. Excluding this impact, EBITDA margin at 14.6% is ahead of both our and consensus estimates for 4QFY15.
Segment-wise revenue numbers were below our estimates except for the electrical consumer durables segment, where revenue growth was 24.0% y-y, vs our estimate of 18.0% y-y growth. Sylvania continued to suffer from a slowdown, with revenue growth at -2.1% y-y while normalised EBITDA of EUR6.60mn was down 14.3% y-y.''
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