Buy Whirlpool of India Ltd between CMP & Rs.647; Target Rs.735 ::HDFC Sec

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Whirlpool of India- Buy between CMP and Rs 647 for a Target of Rs 735 :: HDFC Sec

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Whirlpool of India Ltd - Stellar Results; Growth Story Back as we Believed; Result Update Q2FY15 :: Edelweiss, link

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Whirlpool of India: BOOK PROFIT :: Business Line

Whirlpool India announced its Q4 FY12 and annual results : Team Microsec Research

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Whirlpool India announced its Q4 FY12 and annual results on 08 May 2012. The company’s Net sales increased by 6% YOY to INR629 crore and its EBITDA decreased by 2% YOY to INR60 crore. EBITDA Margin of the company decreased from 10.1% to 9.3% YOY. PAT decreased by 21% YOY to INR37 crore.

On a yearly basis, its net sales decreased by 2% to INR2564 crore and PAT decreased by 25% to INR124 crore resulting into an EPS of INR9.62 for FY12. At the CMP of INR209, the stock discounts its FY12 EPS by 21.7x and FY13E EPS of INR11.0 by 19x. We remain Neutral on the Stock. 

DESCRIPTION	Mar-12	Dec-11	Mar-11	QOQ	YOY
Net Sales	629	593	594	6%	6%
Other operating income	20	26	18
Total Income	649	619	611	5%	6%
Total Expenditure	589	578	549
EBIDTA (Excl OI)	60	41	62	48%	-2%
EBITDA (%)	9.3%	6.6%	10.1%
Other Income	3	2	13
Operating Profit	64	43	75
Interest	1	1	3
Exceptional Items	0	0	0
PBDT	63	42	72
Depreciation	14	12	12
PBT	48	30	60	62%	-19%
Tax	11	9	13
Profit After Tax	37	21	47	77%	-21%
PAT (%)	5.7%	3.4%	7.7%
Equity Capital	126.87	126.87	126.87
Face Value (In Rs)	10	10	10.00
No. of shares	12.687	12.687	12.69
EPS	2.93	1.66	3.72	77%	-21%

Regards,

Team Microsec Research

Whirlpool: Buy ::Business Line,

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Investors with a one-two year perspective can buy the stock of Whirlpool of India. Though the first nine months of FY12 were bad for the company with sales and profit dropping due to lower air-conditioner and refrigerator sales and higher input costs, we believe that the coming months should be better.

This year's summer sales of air-conditioners have begun in parts of the country and it appears that it could be better than last year. Also, with inflation easing and interest rates likely to soften, demand should receive a boost.

The rupee, whose sharp depreciation eroded the company's profit margins, has also winched up from its low of 54 per dollar last December to around 49 now. Besides, the price hike in air-conditioners and refrigerators in January should also improve profit margins, going ahead.

The stock price has corrected from Rs 295 last April to Rs 187 now. At the current market price, the stock trades at around 14 times its likely FY13 per share earnings. Historically, the stock has been trading at around 24 times.

Whirlpool's sales mix is skewed towards refrigerators and air-conditioners. These two products make up over 60 per cent of the company's sales.

Whirlpool India :: JP Morgan India Investor Tour

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Whirlpool India
Demand Trends - Company has witnessed significant demand moderation driven by
weaker consumer sentiments amidst high-inflationary environment during FY12.
Volume growth was down -7.5% in 1HFY12 while value growth declined by -4.8%
in 1HFY12. However, management remains optimistic on the longer term
opportunity in consumer durable space in India. Company would be focusing on
refrigerators, washers, and kitchen appliance categories for future growth.
Working Capital Challenges - Company carries inventory risk for product kept at
dealer’s end. Company has now worked on reducing inventories and receivables
which has resulted in a decline in working capital.
Margins to remain sedate - Company has witnessed softness in margins driven by
higher commodity prices for Steel (+14%) , Copper (+24%) , Plastic resins (+25%),
Oil (+18%) yoy leading to a pressure on margins. Going forward depreciating rupee
will incrementally impact margins in coming quarters.

Investment Focus: Whirlpool of India: Buy: Business Line

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The Whirlpool of India stock is a relatively safe bet for investors seeking to use the market fall to add to their portfolio.

The company's focus on the fast growing segments of white goods – air-conditioners, washing machines and refrigerators – its market leadership that allows for price increases and a debt-free balance sheet, make it a preferred option among consumer stocks.

After the recent fall, the stock also trades at a very reasonable valuation. At the current price of Rs 219 (down over 30 per cent from its recent high), the stock discounts its trailing 12-month earnings by 16 times.

Q3-FY11 earnings updates on Whirlpool of India Ltd:: Keynote

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Q3-FY11 earnings updates on Whirlpool of India Ltd.

Whirlpool of India Ltd. has reported net profit of `24.10cr for the quarter ended 31st Dec10 as against `16.16cr for the corresponding quarter last year gained by 49.1% on y-o-y basis. Sales increased by 19.1% to `600.27cr as against `504.15cr on y-o-y basis. On nine months, the turnover has registered a growth of 27.7% to `2018.41Cr from `1640.03cr, while PAT grew by 36.1% to `118.84cr from `87.30cr.

Whirlpool 26% Upside ENAM 2011 TOP Pick

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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.

Whirlpool of India - Key highlights of Q2-FY11 results : Keynote

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Whirlpool of India

Key highlights of Q2-FY11 results 

Whirlpool Q2FY11 performance is in line with our estimates

Net profit of Whirlpool of India has gained by 22.5% to `30.55Cr as against `24.93Cr on y-o-y basis. Sales increased by 16.33% to `628.11Cr as against `539.92Cr on y-o-y basis. The company is expecting an overall growth rate of 15-20% mainly on expansion of semi-urban markets, development of infrastructure and increase in disposable income. On half yearly basis, the turnover registered a growth of 31% to `1727Cr from `1315Cr, while PAT grew by 33% to `95Cr from `71Cr.

Margin Contraction

The EBIDTA margins declined to 9.8% v/s. 11.3% on y-o-y basic due to higher material cost. The company has increased its prices on its appliances, impact on which will be seen in next quarters.

Expansion Plans

Being a debt free company, it has plans to invest in logistics infrastructure. Going forward, to support higher volumes, the company is likely to increase the number of warehouses.

Concerns

Stiff Competition from Korean & domestic players will be a threat to maintain market share of consumer durable industry. There will be margin pressure due to higher cost of raw material. Interest hike will reduce borrowing capacity of consumer to spend on home appliances.

Outlook & Valuation

At CMP `300 stock trades at 20.6x FY11E EPS and 14.8x FY12E EPS, and P/BV of 9.8 xs and 8.2 xs for FY11E and FY12E respectively. We have a positive outlook on the company based on demand for consumer durables especially home appliances on account of increased per capita income, higher working women population & spread in semi urban markets.