Hi Aditya!
I cannot put an exact figure to the ROIC, but the ROE of the Standalone company has consistently been around 20% through 2009-2015. This is despite the fact that Cables, which is the largest percentage of its sales(~41%) is directly related to the Economy, which hasn’t been in the best of shape over the same period. Furthermore, with the thrust of the Government on using LED lighting, I feel there could be a substantial improvement in this segment also.
The ROE figures of Havells in the period of 2005-2008 used to be well above 30%. Admittedly, it is a much bigger company now. But could it go back to those levels again? If it does PE re-rating could very well take place on a growing earnings base.
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