Author: Sarika Patil

Weekly News Summary

30th May 2025

Market data as on 30th May 2025

The US markets ended mostly lower on Friday after President Donald Trump accused China of violating the trade agreement reached last month. However, bargain hunters fueled the mild recovery later in the day as the report release by the Commerce Department showed consumer prices in the U.S. crept slightly higher in the month of April.

Trump said Vladimir Putin had "gone absolutely CRAZY" by unleashing a massive aerial attack on Ukraine and said he was weighing new sanctions on Moscow, though he also scolded Ukrainian President Volodymyr Zelenskiy.
A U.S. federal court has stopped former President Donald Trump’s plan to impose new trade tariffs on major trading partners. The court said Trump overstepped his authority, as only Congress has the power to regulate international trade. The decision came after a lawsuit filed by five small U.S. businesses that import goods from countries affected by Trump’s proposed tariffs. Trump had used the International Emergency Economic Powers Act (IEEPA) to justify his actions, but the court ruled that the law does not give the president unlimited power to impose tariffs.
Billionaire Tesla CEO Elon Musk is leaving the Trump administration after leading a tumultuous efficiency drive, during which he upended several federal agencies but ultimately failed to deliver the generational savings he had sought.
Even as Nvidia reported another blockbuster quarter of 69% sales growth on Wednesday, the maker of artificial intelligence chips warned of more risks to its business emerging in the technology conflict between the U.S. and China.
The Federal Reserve's May 6–7 meeting minutes show officials are still uncertain about fiscal and trade policy impacts on the economy, Inflation worries: If inflation stays high while growth and employment slow, the Fed could face tough choices. Interest rates: The Fed kept its key rate unchanged at 4.25%–4.5%, as it has since December.
Officials believe the current policy stance is appropriate given the economic risks.

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1

Crude Oil
Crude oil futures settled lower on Thursday owed to lingering supply concerns amid the possibility OPEC+ may agree to accelerate oil production hikes in July. Meanwhile, traders largely shrugged off a report from the Energy Information Administration (EIA) showing crude oil inventories in the U.S. unexpectedly decreased in the week ended May 23. The EIA said crude oil inventories fell by 2.8 million barrels last week after climbing by 1.3 million barrels in the previous week, while street had expected crude oil inventories to rise by 1.0 million barrels

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2

Global News
BYD introduced significant discounts across its electric vehicle lineup over the weekend, aiming to boost sales volumes. While the aggressive pricing strategy may stimulate short-term demand, concerns emerged over potential impacts on the company’s profit margins.
Chinese automakers such as BYD, Nio and Geely tumbled on Monday after industry leader BYD offered fresh incentives on over 20 models and the CEO of Great Wall Motors warned that the world’s largest auto industry was in an unhealthy state.
The United States has suspended some sales to China of critical U.S. technologies, including those related to jet engines to Chinese state-owned aerospace manufacturer COMAC, the New York Times reported on Wednesday.
Xiaomi is set to launch its new YU7 luxury SUV this summer in China, directly challenging Tesla’s popular Model Y. The YU7 could significantly reduce Tesla Model Y’s market share in China,” said Citi analyst Jeff Chung. Analysts expect the YU7 to perform even better than Xiaomi’s earlier SU7 model, according to CLSA’s Elinor.
European companies are more pessimistic about China than ever before, even compared to the pandemic period, according to the EU Chamber of Commerce’s annual survey. Record-low optimism due to slowing growth and geopolitical tensions, 73% of companies said doing business in China got harder over the past year — the highest level ever recorded.
European markets were trading higher with investors picking up stocks amid hopes the European Central Bank will lower interest rates at its ensuing meeting. Asian markets ended lower on Friday due to uncertainty surrounding a court battle about U.S. President Donald Trump's tariffs and rising concerns about U.S. economic stability

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3

India
Market data as on 30th May 2025
The Reserve Bank of India will cut interest rates on June 6 for a third consecutive meeting and once more in August to support a weakened economy, according to a Reuters poll of economists whose forecasts were largely unchanged from the last survey.
The Indian GDP expanded 7.4% from the previous year in the March quarter of 2025, accelerating from the upwardly revised 6.4% growth in the earlier period and sharply above market expectations of a 6.7% rise, marking the sharpest growth rate of the fiscal year
On India’s economic trajectory, the minister stated that the country has maintained sustained growth of 6-7% and hopes to push it to 8% at constant prices. He said ‘Even amidst international upheavals, we are among the better-performing emerging markets. Today, India holds the 4th largest foreign exchange reserves in the world at about $690 billion. Our inflation has remained below 4% for the last three months. The Reserve Bank has done a commendable job balancing liquidity and currency management.
The total FDI, which includes equity inflows, reinvested earnings and other capital, grew 14% to $81.04 billion. Meanwhile, it was $71.3 billion in 2023-24. During 2024-25, Singapore emerged as the largest source of FDI with $14.94 billion inflows. It was followed by Mauritius ($8.34 billion), the US ($5.45 billion), the Netherlands ($4.62 billion), the UAE ($3.12 billion), Japan ($2.47 billion), Cyprus ($1.2 billion), UK ($795 million), Germany ($469 million), and Cayman Islands ($371 million).
Expressing an optimism over India’s growth prospects, NITI Aayog Vice-Chairman Suman Bery has said that the size of the Indian economy in the purchasing power parity (PPP) term is already $15 trillion, which is more than half the size of the US economy.

Tariff war creates opportunity for India in some of sectors: Chief Economic Adviser V Anantha Nageswaran has said ongoing tariff war triggered by reciprocal tariff by the Trump Administration provides an opportunity for India in some sectors. He said India actually has a few silver linings which include low energy prices at the moment.India as an attractive investment destination, Union Minister for Commerce & Industry Piyush Goyal has said that India to remain fastest-growing large economy in the world for next 30 years.

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4

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