Whirlpool of India Ltd., incorporated in the year 1960, is a Large Cap company (having a market cap of Rs 29830.10 Crore) operating in Consumer Durables sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1792.54 Crore, up 17.75 % from last quarter Total Income of Rs 1522.34 Crore and up 29.96 % from last year same quarter Total Income of Rs 1379.27 Crore. Company reported net profit after tax of Rs 123.82 Crore in latest quarter.
Investment Rationale
Whirlpool’s 4QFY21 two-year revenue CAGR of 14.6% is best in coverage universe and provides confidence that the company continues to see market share gains rather than general apprehensions of a risk to market share. It hasn’t resorted to aggressive cost cutting measures during COVID-19. As the economy recovers from the lockdowns, operating leverage should aid margin normalization by FY23E to 11.4%. While topline growth has been at par with coverage universe companies, the low base of FY21 should help in faster earnings growth as peers witness margin erosion from a high base of FY21. This should help the stock catch-up with its peers. To account for the second COVID wave, the brokerage cuts FY22E/23E EPS by 20%/4% and TP to INR2,900 (from INR3,020 earlier) based on unchanged target FY23E P/E of 55x.
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of March 31, 2021, while FIIs held 3.4 per cent, DIIs 11.3 per cent and public and others 10.4 per cent.
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