Havells In Consolidation Mode Ahead Of Q1 Earnings: SEBI RA Sees Buy On Dips Opportunity

Havells is showing short-term technical weakness but remains fundamentally strong, according to the analyst.

Havells is on the analyst’s radar as the leading FMCG company gears up to announce its first quarter (Q1 FY26) earnings next week on July 21. 

SEBI-registered analyst Deepak Pal noted that on its daily charts, the stock appears to be in a consolidation phase, trading below key moving averages like the 100-day and 200-day Exponential Moving Averages (EMAs), signaling weakness.  

The stock's limited strength is indicated by its Relative Strength Index (RSI) at 43.5, though it is not yet in oversold territory. A key observation is the stock's ability to hold the ₹1,500 level over the last three to four trading sessions.

Other indicators suggest a bearish trend and weak momentum. The Parabolic SAR is positioned above the price, and the Moving Average Convergence Divergence (MACD) remains in the negative zone.

Pal cautioned that with Q1 results due next week, some volatility can be expected. If results are strong, Havells may break out of this correction phase, offering a good buy-on-dips opportunity.  

In such a scenario, he suggested traders could look to initiate a buy with a stop loss at ₹1,400. In the medium term, if momentum sustains, the stock could revisit ₹1,650–₹1,700 levels.

Fundamentally, Pal noted that the company has shown consistent revenue and profit growth, supported by strong domestic demand and innovation-driven product offerings.  

Havells demonstrates fundamental strength, underscored by a debt-free balance sheet, robust cash flow generation, and healthy return ratios. The company's strategic emphasis on premiumization, expanding rural reach, and diversifying its product portfolio positions it favorably for sustained long-term growth within the Indian consumer electricals market.

Havells shares have fallen 9% year-to-date (YTD).

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