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Hitachi Home 28% Upside ENAM 2011 TOP Pick
Direct play on Indian consumption
● Hitachi Home (India) is a prominent player in the premium air conditioning segment. The company has
two plants in Jammu and Kadi with a total capacity of 4 lakh units.
● We believe the market size can grow to 18 mn by 2020 from 2.5 mn currently (growing at a CAGR of
22%) increasing the penetration to 25%(which is still lower considering China’s penetration of 51% today).
will post better growth and increase market share to double digits from the current 6‐7%.
● Looking at the growth prospects of the Hitachi along with its robust fundamentals, we believe the stock
looks attractive at the current levels. We arrive at a target price of Rs. 279 based on 14x its FY12E EPS of
Rs.19.9, giving an upside of 28%.
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