We have retained our earnings estimates and Buy rating on the stock with an unchanged target price of Rs1,840 based on 38x FY21E earnings. In FY19,WIL’s performance was healthy with 12% revenue growth (in a challenging summer season as well as on a high base of 23% YoY growth in FY18), 11.9% EBITDA margin (up 30bps YoY) and 17% earnings growth. We continue to remain optimistic about WIL outpacing industry growth and expect it to report a healthy 17% revenue CAGR over FY19-FY21E. With a 40bps margin expansion and rising other income, the earnings CAGR is likely to be much higher at 22% over FY19-FY21E.
WIL is a strong financial franchise with 22% earnings CAGR over FY19-FY21E, strong free cash flow, negative working capital cycle, healthy margin profile, healthy return ratios and high cash level which will support its premium valuation.