Author: Sarika Patil

Weekly News Summary

27th June 2025

Market data as on 27th June 2025

Trump said Iran and Israel had agreed to a ceasefire, sending oil prices into a deep dive as concerns over supply disruptions ebbed. There was no immediate comment yet from Israel. While an Iranian official earlier confirmed that Tehran had agreed to a ceasefire, the country's foreign minister said there would be no cessation of hostilities unless Israel stopped its attacks

Tesla stock popped as its robotaxi test kicked off smoothly on Sunday, with investors and Tesla enthusiasts breathing a sigh of relief — at least for now. “The @Tesla_AI robotaxi launch begins in Austin [Sunday] afternoon with customers paying a $4.20 flat fee!”
The ceasefire brokered by U.S. President Donald Trump between Iran and Israel appeared to be holding on Wednesday a day after both countries signalled that their air war had ended, at least for now.
The Fed maintained the interest rates at 4.25%-4.5% for the fourth consecutive meeting, in line with expectations. Nevertheless, the updated projections indicated 50bps cut in this year (as in March projections), with fewer cuts anticipated in 2026 and 2027. Furthermore, the proposition for another 50bps cut in 2025 was quite close, as 7 out of the 19 policymakers favoured no further reductions, and 2 expected only one 25bps cut. Eight members supported a 50bps cut and 2 advocated for a 75bps cut. Overall, growth forecasts were revised downward for 2025 and 2026, while inflation is now predicted to be higher.
Republican-controlled US Senate passed its first procedural hurdle in a 51 to 49 vote on Saturday, for President Donald Trump's so-called "Big Beautiful Bill". Two Republican senators joined all Democrats in voting against it.
Donald Trump says the US has made a trade deal with "probably four or five different countries," naming agreements with China and the UK. Trump also says they're close to reaching a deal with India. He speaks at the White House.
US existing home sales improved slightly in May, a small sign of life for a housing market that’s been rocked by high mortgage rates and growing economic uncertainty.

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Crude Oil
Crude oil prices fell at the start of the week due to an anticipated increase in OPEC+ supply and the disappearance of the wartime premium after the Israel-Iran ceasefire.
The global economic outlook remains cautious, with bearish sentiment also influenced by recent manufacturing data from China.
US active drilling rig counts for both oil and gas continued to decline, with oil rigs specifically down by 47 compared to a year ago.

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Global News
European markets were trading higher after a White House official said the United States has struck a deal with China to expedite rare earth shipments, marking a significant step towards resolving their ongoing trade war. Asian markets settled mixed despite U.S. President Donald Trump announcing a trade deal with China on rare earths and hinting at a major upcoming deal with India.
Australian consumer price inflation slowed more than expected in May, while the closely watched core measure hit three-and-a-half-year lows as investors locked in bets for an imminent rate cut. Swaps now imply a 90% probability that the Reserve Bank of Australia would cut rates by a quarter-point when it delivers its policy decision on July 8.
The Bank of Japan may need to raise interest rates "decisively" to address inflation risks even if uncertainties over U.S. tariffs persist, a hawkish member of its board said, highlighting the bank’s attention to growing price pressures.
A leading indicator of Japan’s service-sector inflation hit 3.3% in May, data showed on Wednesday, keeping alive expectations of further interest rate hikes by the central bank.
Trump said he was ending all trade discussions with Canada after claiming the country moved to implement a digital services tax, and threatened to impose a fresh tariff rate within the next week.
Indonesia has offered the United States the chance to jointly invest in a critical minerals project as part of its tariff negotiations with Washington, its senior economic minister said on Monday

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India
Market data as on 27th June 2025
Housing sales across India’s top 9 cities are projected to decline 19% in Q2 CY2025 (April–June) to 91,884 units, due to lower new launches and subdued demand. New supply is also expected to fall sharply by 30% to 82,027 units, down from over 1.17 lakh units in Q2 CY2024
India’s construction chemicals sector is growing rapidly due to infrastructure projects, green-building initiatives, and government housing schemes. Projected CAGR exceeds 13% through 2030, driven by demand for waterproofing, admixtures, and repair chemicals.
British luxury carmaker Jaguar Land Rover lowered its fiscal 2026 earnings before interest and taxes margins forecast to 5%-7% on Monday from 10% earlier, amid uncertainty in the global auto industry as U.S. tariffs loom .
The National Housing Bank (NHB) has tightened refinancing rules to prevent misuse of home loans by HFCs. Now, refinancing is allowed only if construction is less than 50% complete at first disbursement. This blocks HFCs from getting funds for completed or self-financed home
RBI reduced the priority sector lending (PSL) target for Small Finance Banks (SFBs) from 75% to 60%.SFBs can now diversify their loan books, reduce reliance on low-margin PSL loans, and boost high-yield segments like unsecured and small-ticket personal/business loans. This move is expected to bring greater flexibility and profitability for SFBs.
India exported $3.09 billion worth of mobile phones in May 2025, the second-highest ever in a single month — growing 74% compared to last year. This strong boost is driven mainly by Apple, which is shifting more production to India due to global trade tensions.

HSBC’s flash PMI for June shows business activity at a 14-month high across manufacturing and services (composite index ~61.0), driven by export-led demand and robust job growth. manufacturing at 58.5 and services at 60.4. Export orders are surging, spurring record hiring—the strongest since 2006.

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Source: Company data, Institutional Research	Company Snapshot / Havells India Ltd. (Havells) is the leading manufacturer of fast moving electrical goods and major power distribution equipment. The company is head quartered in Noida and having presence across geographies. Havells enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, CFL Lamps, and Luminaires for Domestic, Commercial and Industrial Applications. The company has very strong distribution network not only in India but also across the geographies. The company has 12 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Sahibabad, Faridabad, Assam, Alwar and Neemrana, manufacturing globally acclaimed products, synonymous with excellence and precision in the electrical industry. / Investment Rationale / Favorable market conditions and strong demand will help them to grow / Indian economy is improving with the higher momentum. It is one of the fastest growing economies in the world. This growth helps to create greater per capita income and also the stronger demand. With the increasing robustness of the market, there is huge opportunity for the electrical goods and consumption businesses. Total domestic market size of electrical segment is approximately Rs.45, 000crs. According to the company and the industry resources the electrical segment vertical likely to grow by 12% CAGR for next 5 years. The home appliances vertical is also having great demand for from the domestic market. The market size has increase with the higher momentum and will also likely in the upcoming future. Total market size of the home appliances is at Rs.70,000 Crs. And will likely to grow by 15% CAGR in the next 5 years. / Robust business structure gives edge over its peers / Havells owns some of the most prestigious brands like Havells, Lloyd, Crabtree, Standard and Promptec. Its network constitutes of 4000 professionals, over 7575 dealers and 40 branches in the country. Its products are available in 40 countries. The company has 12 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Sahibabad, Faridabad, Assam, Alwar and Neemrana, manufacturing globally acclaimed products, synonymous with excellence and precision in the electrical industry. Havells along with its brands have earned the distinction of being the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad. Havells offers same quality products for both Indian and International markets. It is committed to keep powering the world with its state-of-the-art innovations and energy-efficient solutions. Currently over 90% of its product offerings are energy efficient and manufactured in-house. / Valuation / At the CMP of `661, Havells is trading at 50.4x, and 39.06x its FY19E, and FY20E EPS of `13.16 and `17.00. Compared to its peers; Havells is trading at a discount P/E multiple, although its margins are better than or comparable to peers. We initiate coverage on Havells India Ltd with a BUY rating and attach a multiple of 47.6 xs to Havells’ FY20E earnings (EPS) to arrive at the target price of `809, indicating a potential upside of 22%.

Source: Company data, Institutional Research	Company Snapshot / Havells India Ltd. (Havells) is the leading manufacturer of fast moving electrical goods and major power distribution equipment. The company is head quartered in Noida and having presence across geographies. Havells enjoys enviable market dominance across a wide spectrum of products, including Industrial & Domestic Circuit Protection Devices, Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Electric Water Heaters, Power Capacitors, CFL Lamps, and Luminaires for Domestic, Commercial and Industrial Applications. The company has very strong distribution network not only in India but also across the geographies. The company has 12 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Sahibabad, Faridabad, Assam, Alwar and Neemrana, manufacturing globally acclaimed products, synonymous with excellence and precision in the electrical industry. / Investment Rationale / Favorable market conditions and strong demand will help them to grow / Indian economy is improving with the higher momentum. It is one of the fastest growing economies in the world. This growth helps to create greater per capita income and also the stronger demand. With the increasing robustness of the market, there is huge opportunity for the electrical goods and consumption businesses. Total domestic market size of electrical segment is approximately Rs.45, 000crs. According to the company and the industry resources the electrical segment vertical likely to grow by 12% CAGR for next 5 years. The home appliances vertical is also having great demand for from the domestic market. The market size has increase with the higher momentum and will also likely in the upcoming future. Total market size of the home appliances is at Rs.70,000 Crs. And will likely to grow by 15% CAGR in the next 5 years. / Robust business structure gives edge over its peers / Havells owns some of the most prestigious brands like Havells, Lloyd, Crabtree, Standard and Promptec. Its network constitutes of 4000 professionals, over 7575 dealers and 40 branches in the country. Its products are available in 40 countries. The company has 12 state-of-the-art manufacturing plants in India located at Haridwar, Baddi, Sahibabad, Faridabad, Assam, Alwar and Neemrana, manufacturing globally acclaimed products, synonymous with excellence and precision in the electrical industry. Havells along with its brands have earned the distinction of being the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad. Havells offers same quality products for both Indian and International markets. It is committed to keep powering the world with its state-of-the-art innovations and energy-efficient solutions. Currently over 90% of its product offerings are energy efficient and manufactured in-house. / Valuation / At the CMP of `661, Havells is trading at 50.4x, and 39.06x its FY19E, and FY20E EPS of `13.16 and `17.00. Compared to its peers; Havells is trading at a discount P/E multiple, although its margins are better than or comparable to peers. We initiate coverage on Havells India Ltd with a BUY rating and attach a multiple of 47.6 xs to Havells’ FY20E earnings (EPS) to arrive at the target price of `809, indicating a potential upside of 22%.

CMP (`)	Target (`)
661	809

Potential Upside	Absolute Rating
22%	BUY

Market Info (as on September 06, 2018)
BSE Sensex	38,018
Nifty S&P	11,477

Stock Detail
BSE Group	A
BSE Code	517354
NSE Code	HAVELLS
Bloomberg Code	HAVL IN
Market Cap (`bn)	415.34
Free Float (%)	38%
52wk Hi/Lo	728.95 / 454.00
Avg. Daily Volume (NSE)	555,063
Face Value / Div. per share (`)	1.00 / 3.00
Shares Outstanding (mn)	625

Promoters	Public	Others
59.55	40.45	0.01

Financial Snapshot (`mn)
Y/E Mar	FY17	FY18	FY19E	FY20E
Net Sales	61,558	81,464	97,757	1,17,308
EBITDA	8,182	10,434	12,708	15,954
PAT	4,941	6,735	8,232	10,631
EPS	7.91	10.77	13.16	17.00
ROE (%)	15%	18%	20%	22%
ROCE (%)	20%	23%	25%	29%
P/E	58.1	66.5	54.4	42.1
EV/EBITDA	34.4	42.7	34.9	27.7

Share Price Performance

Rel. Perf.	1Mth	3 Mths	6Mths	1Yr
Havells (%)	3.04	25.2	30.6	34.1
Sensex (%)	(4.7)	2.1	5.1	25.0

CMP (`)	Target (`)
661	809

Potential Upside	Absolute Rating
22%	BUY

Market Info (as on September 06, 2018)
BSE Sensex	38,018
Nifty S&P	11,477

Stock Detail
BSE Group	A
BSE Code	517354
NSE Code	HAVELLS
Bloomberg Code	HAVL IN
Market Cap (`bn)	415.34
Free Float (%)	38%
52wk Hi/Lo	728.95 / 454.00
Avg. Daily Volume (NSE)	555,063
Face Value / Div. per share (`)	1.00 / 3.00
Shares Outstanding (mn)	625

Promoters	Public	Others
59.55	40.45	0.01

Financial Snapshot (`mn)
Y/E Mar	FY17	FY18	FY19E	FY20E
Net Sales	61,558	81,464	97,757	1,17,308
EBITDA	8,182	10,434	12,708	15,954
PAT	4,941	6,735	8,232	10,631
EPS	7.91	10.77	13.16	17.00
ROE (%)	15%	18%	20%	22%
ROCE (%)	20%	23%	25%	29%
P/E	58.1	66.5	54.4	42.1
EV/EBITDA	34.4	42.7	34.9	27.7

Share Price Performance

Rel. Perf.	1Mth	3 Mths	6Mths	1Yr
Havells (%)	3.04	25.2	30.6	34.1
Sensex (%)	(4.7)	2.1	5.1	25.0