External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Equity Bottom-Up

<p>New launches, rural expansion intact in a COVID-disrupted year HAVL's FY21 Annual Report emphasizes on operations in a COVID-19 disrupted year. The management continued to focus on expanding distribution, particularly in rural areas, and launching newer and innovative products. All these measures led to HAVL's capitalizing on pent up demand arising post the lifting of lockdown restrictions,...</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

New launches, rural expansion intact in a COVID-disrupted year HAVL's FY21 Annual Report emphasizes on operations in a COVID-19 disrupted year. The management continued to focus on expanding distribution, particularly in rural areas, and launching newer and innovative products. All these measures led to HAVL's capitalizing on pent up demand arising post the lifting of lockdown restrictions,...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New launches, rural expansion intact in a COVID-disrupted year

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Thematic (Sector/Industry)

<p>In our earlier insight, <a href="https://www.smartkarma.com/insights/pli-schemes-let-s-not-get-carried-away" target="_blank" data-smartkarma-citation="insights:45394" rel="noopener">PLI Schemes: Let's Not Get Carried Away</a> we had discussed our take on the recent PLI introduced by the government and how it can shape the economy. This insight focuses on the White goods PLI which have been handed a total budget of INR 62.4 bn. We further narrow our take on the air conditioners (ACs) segment of the white goods.</p>
<p>Domestic AC manufacturers were particularly abuzz when the first thought of PLI came in from the government. However the recent development of the scheme, which targets only the component manufacturing has left most of the domestic large companies thinking whether to opt for the PLI or not.</p>

In our earlier insight, PLI Schemes: Let's Not Get Carried Away we had discussed our take on the recent PLI introduced by the government and how it can shape the economy. This insight focuses on the White goods PLI which have been handed a total budget of INR 62.4 bn. We further narrow our take on the air conditioners (ACs) segment of the white goods.
Domestic AC manufacturers were particularly abuzz when the first thought of PLI came in from the government. However the recent development of the scheme, which targets only the component manufacturing has left most of the domestic large companies thinking whether to opt for the PLI or not.

PLI for White Goods: Domestic Companies Left Stranded

Forensic Accounting

<p><a href="https://www.smartkarma.com/entities/havells-india-ltd" target="_blank" data-smartkarma-citation="entities:9158:1" rel="noopener">Havells India (HAVL IN)</a>  is one of the leading players in the Fast Moving Electrical Goods (FMEG) industry. The company manufactures and sells switches, cables, lightings, ACs and other electrical consumer durables under its portfolio. </p>
<p>Analysis of recent annual reports reveal some serious balance sheet issues such as inventory expansion and margin management, misclassification of operating cash flows and questionable debt raising. Moreover according to our channel interactions, it should be noted that whatever the growth the company has generated in F21 is majorly a result of price hikes, where as the volume growth is considered to be muted.</p>

Havells India (HAVL IN)  is one of the leading players in the Fast Moving Electrical Goods (FMEG) industry. The company manufactures and sells switches, cables, lightings, ACs and other electrical consumer durables under its portfolio. 
Analysis of recent annual reports reveal some serious balance sheet issues such as inventory expansion and margin management, misclassification of operating cash flows and questionable debt raising. Moreover according to our channel interactions, it should be noted that whatever the growth the company has generated in F21 is majorly a result of price hikes, where as the volume growth is considered to be muted.

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

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<h2>About India Channel Insight</h2>
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<p>Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.  </p>
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<p>For this insight, we share our takeaways from interaction with two major consumer durable industry professionals. First, is the Co-founder of a well-known consumer brand that outsources and also imports some of the products. The second professional holds a leadership position in the second-largest durable manufacturer supplying to brands like <a href="https://www.smartkarma.com/entities/voltas-ltd" target="_blank" data-smartkarma-citation="entities:19924:1" rel="noopener">Voltas Ltd (VOLT IN)</a> and <a href="https://www.smartkarma.com/entities/havells-india-ltd" target="_blank" data-smartkarma-citation="entities:9158:1" rel="noopener">Havells India (HAVL IN). </a></p>
<p>These takeaways will be interesting for investors in <a href="https://www.smartkarma.com/entities/havells-india-ltd" target="_blank" data-smartkarma-citation="entities:9158:1" rel="noopener">Havells India (HAVL IN)</a> , <a href="https://www.smartkarma.com/entities/voltas-ltd" target="_blank" data-smartkarma-citation="entities:19924:1" rel="noopener">Voltas Ltd (VOLT IN)</a>, <a href="https://www.smartkarma.com/entities/amber-enterprises-india-ltd" target="_blank" data-smartkarma-citation="entities:32202:1" rel="noopener">Amber Enterprises India (AMBER IN)</a> and <a href="https://www.smartkarma.com/entities/dixon-technologies-india-ltd" target="_blank" data-smartkarma-citation="entities:25486:1" rel="noopener">Dixon Technologies India Ltd (DIXON IN)</a> </p>
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About India Channel Insight



Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.  


For this insight, we share our takeaways from interaction with two major consumer durable industry professionals. First, is the Co-founder of a well-known consumer brand that outsources and also imports some of the products. The second professional holds a leadership position in the second-largest durable manufacturer supplying to brands like Voltas Ltd (VOLT IN) and Havells India (HAVL IN). 
These takeaways will be interesting for investors in Havells India (HAVL IN) , Voltas Ltd (VOLT IN), Amber Enterprises India (AMBER IN) and Dixon Technologies India Ltd (DIXON IN) 



India Channel Insight | Supply Chain Interactions - Havells, Voltas, Amber, Dixon

<p>The objective of this insight is to reflect back on our work published on SmartKarma - to highlight what has worked for us and more importantly what has not worked and our plans to improve the same. </p>
<p>2020 is indeed special and we are unlikely to see something similar in our professional life once again. Therefore, we have made an attempt to capture our key learnings, which will also enable us to reflect back on the same at frequent intervals in time. </p>
<p>We also highlight our key themes for 2021 along with sectorial preferences where we might deploy our resources. </p>

The objective of this insight is to reflect back on our work published on SmartKarma - to highlight what has worked for us and more importantly what has not worked and our plans to improve the same. 
2020 is indeed special and we are unlikely to see something similar in our professional life once again. Therefore, we have made an attempt to capture our key learnings, which will also enable us to reflect back on the same at frequent intervals in time. 
We also highlight our key themes for 2021 along with sectorial preferences where we might deploy our resources. 

2020 Review & 2021 Key Themes | What Worked and What Has Not

India

Havells India Limited manufactures electrical products. The Company's products include building circuit protection equipment, industrial switchgears, energy meters, cables & wires, modular switches, fans and lighting products.

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Havells India (HAVL IN)

New launches, rural expansion intact in a COVID-disrupted year

New launches, rural expansion intact in a COVID-disrupted year HAVL's FY21 Annual Report emphasizes on operations in a COVID-19 disrupted year. The...

Motilal Oswal

PLI for White Goods: Domestic Companies Left Stranded

AC manufacturers were particularly abuzz when the first thought of PLI came in. However, the recent development of the scheme has left most of the...

Nitin Mangal

Forensic Analysis: Havells India Ltd

Analysis of recent annual reports reveal some serious balance sheet issues such as inventory expansion and margin management, misclassification of...

Nitin Mangal

India Channel Insight | Supply Chain Interactions - Havells, Voltas, Amber, Dixon

We share our takeaways from interaction with consumer durable industry professionals. These takeaways will be interesting for investors invested or...

Pranav Bhavsar

2020 Review & 2021 Key Themes | What Worked and What Has Not

A walk down the memory lane. What has worked, what has not, what have we learnt and how we think 2021 will pan out, this insight is our reflection...

Pranav Bhavsar

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