Upgrade to Buy; retain TP at INR590 (35x Dec’19 EPS): We expect HAVL to report21% EPS CAGR over FY17-20, with EBITDA margin expanding 40bp to 13.8%. Withthe Lloyd acquisition, HAVL has turned itself into a complete electricals anddurables behemoth, and is well positioned to tap into the under-penetrated Indianmarket. Our target price is based on 35x Dec’19 EPS (in line with CromptonConsumer Electricals).
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Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.
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