On October 24, 2024, shares of Havells India slipped by 2.02%, with the stock trading at ₹1713.5. This decline unfolded amidst a backdrop of broader market contractions, reflected in falling indices such as the Nifty and Sensex.
| Table of Contents |
|---|
| Share Performance Details |
| Market Overview |
| Technical Analysis |
| Trading Volume Insights |
| Fundamental Analysis |
| Peer Performance Comparison |
| Forecast and Analyst Outlook |
| Conclusion |
Share Performance Details
Havells India shares are currently down by 2.02%, trading at ₹1713.5. The stock opened the day at ₹1770 before witnessing a decline and eventually closing at ₹1713.5. The trading day saw the stock reach a high of ₹1770 and a low of ₹1711.2.
Market Overview
In broader market conditions, the Nifty index is slightly down by 0.12%, while the Sensex is trading at ₹80002.9, reflecting a decrease of 0.1%. These downtrodden indices indicate a persuasive bearish trend impacting not only Havells India but the market at large.
Technical Analysis
Technically, Havells India shares are trading above the 300-day Simple Moving Average (SMA) of ₹1691.94. However, the stock remains below key SMAs for 5, 10, 20, 50, and 100 days, suggesting a cautious sentiment among traders. Key support levels are identified at ₹1739.63, ₹1727.32, and ₹1708.63, while resistance levels stand at ₹1770.63, ₹1789.32, and ₹1801.63.
Trading Volume Insights
Trading volume for Havells India surged to 318.30% higher than the previous session up until 11 AM. An uptick in trading volume can often indicate a prediction of future trends, hinting at the potential for volatility in the coming sessions.
Fundamental Analysis
Regarding fundamentals, Havells India boasts a Return on Equity (ROE) of 18.06%. The company has a high Price to Earnings (P/E) ratio of 77.85, indicating market expectations of growth. The Price to Book (P/B) ratio stands at 14.07. Promoter holding is currently at 0.00%, while Mutual Fund holdings have seen a modest increase to 4.32%. Foreign Institutional Investor (FII) holdings have decreased to 24.76% in the last quarter.
Peer Performance Comparison
When comparing peer performance, companies such as Schaeffler India, Sundram Fasteners, and Timken India are similarly witnessing declines, highlighting broader sector challenges. Conversely, Bharat Forge has shown positive momentum, suggesting mixed trends within the sector.
Forecast and Analyst Outlook
Looking ahead, analysts maintain a median 1-year forecasted price target for Havells India shares at ₹1944.00, indicating a potential upside of 13.45%. This outlook suggests that, despite current declines, there remains a favorable long-term view from market participants.
Conclusion
In summary, Havells India is experiencing notable fluctuations amid a declining broader market. With its current technical and fundamental indicators suggesting a bearish trend, investor sentiment remains cautious. As trading volumes increase and share performance continues to fluctuate, it will be crucial for investors to strategically assess potential risks and opportunities moving forward.
FAQ
1. What caused the decline in Havells India shares?
The decline is part of a broader market correction affecting multiple indices, influencing sentiment around Havells India shares.
2. What is the significance of the trading volume increase?
Increased trading volume can indicate heightened investor interest, possibly foreshadowing significant price movements.
3. How do the P/E and P/B ratios impact investment decisions?
High P/E ratios suggest growth expectations, while P/B ratios can indicate valuation compared to company assets, influencing investment choices.
