(Rating: BUY, TP: Rs2,794, Upside: 19.1%)
- WHIRL delivered a mixed set of results with revenue beating expectations and EBITDA coming in-line with estimates. Sharp reduction in other income resulted in lower than estimated PAT. Gross margin contracted 247bps which is attributable to higher commodity prices.
- Whirlpool saw strong growth in Q4 with all categories and geographies showing strong double-digit volume growth. Cost rationalization has resulted in EBITDA margin expansion despite sharp contraction in gross margins.
- Our channel checks have suggested that Whirlpool has managed to gain market shares in both refrigerator and washing machine categories
- We expect FY21-23E Revenue/EBITDA/PAT CAGR of 16%/34%/46% on a favorable base and arrive at our PT of Rs2,794 valuing the company at 50x FY23 EPS.
Shares of WHIRLPOOL OF INDIA LTD. was last trading in BSE at Rs.2272.95 as compared to the previous close of Rs. 2351.85. The total number of shares traded during the day was 62464 in over 9319 trades.
The stock hit an intraday high of Rs. 2418.95 and intraday low of 2260. The net turnover during the day was Rs. 146061342.