Hold Whirlpool of India, target price Rs 1725: Emkay Global

Emkay Global has hold call on Whirlpool of India with a target price of Rs 1725. The current market price of . is Rs 1655.05. Time period given by analyst is one year when Ltd. price can reach defined target.
of India Ltd., incorporated in the year 1960, is a Large Cap company (having a market cap of Rs 21067.07 Crore) operating in Consumer Durables sector.

Whirlpool of India Ltd. key Products/Revenue Segments include Domestic Appliances, Sale of services and Export Incentives for the year ending 31-Mar-2021.


For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1720.32 Crore, up 10.30 % from last quarter Total Income of Rs 1559.71 Crore and down -4.03 % from last year same quarter Total Income of Rs 1792.54 Crore. Company reported net profit after tax of Rs 84.48 Crore in latest quarter.

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Investment Rationale
Although the market share, at the aggregate level, stabilized in Q4, the slide in the share of entry-level products continued in both WMs and Refs. A complete cessation of market share losses and a recovery in demand at the industry level are essential for reversing the down-cycle in earnings. First-time buyers and demand from Tier-II & III cities, as well as semi-urban areas, are expected to support volume recovery in semi-automatic WMs and direct-cool Refs. For Whirlpool, a recovery in demand for entry-level products is key to improving GMs. Furthermore, continued commodity inflation and competitive intensity remain the main factors affecting the low margin profile. The channel checks continue to show that competitive intensity remains high and is unlikely to subside anytime soon. And, this could weigh on WHIRL’s performance and the pace of recovery in both market share and profitability. Before the brokerage gets constructive on the stock, it expects a reversal of the downward trend in earnings and a sustained recovery in market share. Downside/upside risks: macro slowdown; sustained commodity inflation and INR volatility; inability to reverse the margin contraction; and faster-than-expected market share recovery

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 2.84 per cent, DIIs 11.91 per cent.

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