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Whirlpool 26% Upside ENAM 2011 TOP Pick
Direct play on Indian consumption
● Whirlpool is a direct play on Indian consumption industry. The company has been able to straddle
across segments from refrigerators and washing machines to air‐ conditioners, microwaves and water
purifiers. Focusing on both the mass and the premium segments gives it an edge over the other players.
penetration level in Indian market. Currently, the size of refrigerator industry is only 5.5 mn units with
penetration of around 17%. The refrigerator market can grow to 25 mn by 2020 (growing at a CAGR of
16%). The industry size of AC’s in FY10 is only 2.5 mn units (penetration level of only 3%)which is
poised to grow to 18 mn by 2020 (CAGR of 22%). Uninterrupted power supply will also give a fillip to
this market.
● Whirlpool has a strong demand pull and the company is fast expanding its presence in tier 2,3,4 towns
where the growth rates are higher coupled with its strong product portfolio and large distribution
network.. We believe Whirlpool can register a sales growth CAGR of 22.8% from FY10‐13E. We have a
target price of Rs. 355 (based on 18x FY13E EPS of Rs. 19.7) giving potential upside of 26%.
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