Sell Whirlpool India, target price Rs 1,540: Kotak Institutional Equities

Kotak Institutional Equities has maintained sell rating on Whirlpool of India and raised target price to Rs 1,540 from Rs 1,260. The stock ended up 3.13 per cent at Rs 1,900.15 on Monday even as the BSE Sensex closed 415.86 points up (+1.33 per cent) at 31,743.08.

Whirlpool of India Ltd., incorporated in 1960, has a market cap of Rs 24107.55 crore.

Investment Rationale


Closure of retail outlets on account of the lockdown will negatively impact revenues in FY21, said KIE. Discretionary nature of the products basket and premium positioning may keep momentum weak in FY22 too, KIE said.

Financials

Whirlpool of India's key products/revenue segments include Domestic Appliances which contributed Rs 5206.91 crore to sales value (96.46 per cent of total sales), Sale of services which contributed Rs 178.37 crore to sales value (3.30 per cent of total sales) and Export Incentives which contributed Rs 12.37 crore to sales value (0.22 per cent of total sales) for the year March 31, 2019.

For the quarter ended December 31, 2020, the company reported consolidated sales of Rs 1271.24 crore, down -8.77 per cent from last quarter sales of Rs 1393.46 crore and up 4.93 per cent from last year same quarter sales of Rs 1211.54 crore. The company reported net profit after tax of Rs 73.22 crore in the latest quarter.

Promoter/FII Holdings

Promoters held 74.99 per cent stake in the company as of the fourth quarter ending March 31, 2019, while FIIs held 3.78 per cent, DIIs 10.61 per cent and public & others 10.62 per cent.