Stock Review: HAVELLS INDIA

A leading Indian consumer electrical goods company with astrong distribution network. While its lighting and durables businesses are seen growing at a steady pace, new products are expected to fuel growth over the next two years. Analysts expect its international subsidiary, Sylvania, to report better margins in 2011-12 and drive global revenues. Broadly, Havells' revenue and net profit are expected to grow by 20 per cent and 23-25 per cent, respectively, over the next two to three years. A key concern is its elevated debt-equity ratio, though this has fallen by a third to 1.8 in 2010-11. Given its cash profits of `400 crore and cash balance of `175 crore, expect debt levels to fall.