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ICICI Securities has buy call on Whirlpool of India with a target price of Rs 2000. The current market price of Whirlpool of India is Rs 1536.55. Time period given by analyst is one year when Whirlpool of India Ltd. price can reach defined target.
Whirlpool of India Ltd., incorporated in the year 1960, is a Large Cap company (having a market cap of Rs 19471.65 Crore) operating in Consumer Durables sector.
Whirlpool of India Ltd. key Products/Revenue Segments include Domestic Appliances, Sale of services and Export Incentives for the year ending 31-Mar-2022.
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1720.32 Crore, up 10.30 % from last quarter Total Income of Rs 1559.71 Crore and down -4.03 % from last year same quarter Total Income of Rs 1792.54 Crore. Company reported net profit after tax of Rs 84.48 Crore in latest quarter.
Investment Rationale
Whirlpool of India (Whirlpool) reported decade low return ratios in FY22, as its PAT margin suffered a blow from input material inflation. The premium and mid-premium segments did well but entry-level products were impacted due to high inflationary period. The company initiated cost-saving measures and also cut ad- spend as % of sales to protect EBITDA margins. It continued to launch new range of innovative products in refrigerators and microwaves. The company also invested in digital platforms for building the capability to deliver orders in 48 hours. Net working capital days increased from -1 in FY21 to 12 in FY22 leading to weak FCF generation. Exports remained impacted due to steep decline in Sri Lanka sales. The brokerage remains structurally positive on Whirlpool given its strong brand, established competitive advantages, and steady launch of premium products. It maintains BUY with DCF-based target price of Rs 2,000 (implied P/E 48x FY24E).
Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 2.84 per cent, DIIs 11.91 per cent.
Whirlpool of India Ltd., incorporated in the year 1960, is a Large Cap company (having a market cap of Rs 19471.65 Crore) operating in Consumer Durables sector.
Whirlpool of India Ltd. key Products/Revenue Segments include Domestic Appliances, Sale of services and Export Incentives for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1720.32 Crore, up 10.30 % from last quarter Total Income of Rs 1559.71 Crore and down -4.03 % from last year same quarter Total Income of Rs 1792.54 Crore. Company reported net profit after tax of Rs 84.48 Crore in latest quarter.
Investment Rationale
Whirlpool of India (Whirlpool) reported decade low return ratios in FY22, as its PAT margin suffered a blow from input material inflation. The premium and mid-premium segments did well but entry-level products were impacted due to high inflationary period. The company initiated cost-saving measures and also cut ad- spend as % of sales to protect EBITDA margins. It continued to launch new range of innovative products in refrigerators and microwaves. The company also invested in digital platforms for building the capability to deliver orders in 48 hours. Net working capital days increased from -1 in FY21 to 12 in FY22 leading to weak FCF generation. Exports remained impacted due to steep decline in Sri Lanka sales. The brokerage remains structurally positive on Whirlpool given its strong brand, established competitive advantages, and steady launch of premium products. It maintains BUY with DCF-based target price of Rs 2,000 (implied P/E 48x FY24E).
Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 2.84 per cent, DIIs 11.91 per cent.
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