Add Whirlpool of India, target price Rs 2364: ICICI Securities

ICICI Securities has add call on Whirlpool of India with a target price of Rs 2364.0. The current market price of Whirlpool of India Ltd. is Rs 2015.05 Time period given by analyst is year when Whirlpool of India Ltd. price can reach defined target.

Whirlpool of India Ltd., incorporated in the year 1960, is a Large Cap company (having a market cap of Rs 25960.51 Crore) operating in Consumer Durables sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1354.61 Crore, down -24.43 % from last quarter Total Income of Rs 1792.54 Crore and up 30.10 % from last year same quarter Total Income of Rs 1041.24 Crore. Company reported net profit after tax of Rs 23.34 Crore in latest quarter.

Investment Rationale
The brokerage models Whirlpool to report PAT CAGR of 44.8% over FY21-FY23E and RoCE to be upwards of 20% over FY22-23. It remains positive on the company’s business model due to established competitive advantages and growth opportunities. It maintains ADD with a DCF-based target price of Rs2,364 (implied P/E 43x FY23E). Key risks are steep increase in competitive pressures and steep inflation in input prices.


Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of June 30, 2020, while FIIs held 3.1 per cent, DIIs 10.8 per cent and public and others 11.1 per cent.