Havells India Limited

“Havells owns one of India's best-distributed electrical brands with a deeply entrenched installer and dealer network that produces durable pricing power in switchgear and wiring accessories — a core franchise with minimal risk of permanent impairment. However, the Lloyd AC acquisition has consumed capital for years without proportionate return, diluting consolidated ROIC to 14-16% and compressing FCF to near-zero in FY2026 despite strong operating cash flows. At 44.9x trailing P/E, the stock is priced for near-perfect execution across both segments, leaving a base-case IRR of roughly 9% — below what a long-term investor should require. The business deserves a place on every watchlist; it does not deserve a position at today's price.”