Ideas for Profit: This consumer durable stock stays immune to market volatility
January 03, 2020 / 10:09 PM IST
Whirlpool of India Q4 | Profit at Rs 87.41 cr versus Rs 104.10 cr, revenue at Rs 1,353.62 cr versus Rs 1,355.15 cr YoY. (Image: Reuters)
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Whirlpool is among India’s major home appliance manufacturers and retailers. We are bullish on the company because of its robust fundamentals, a growing distribution network and periodic availability of new products. However, its lofty valuations temper our near-term excitement.
Q1 FY20 review
- Sales growth was healthy on the back of a harsh summer (which led to improved offtake of refrigerators and air conditioners) and market share gains.
- Operating margin expansion was largely due to cost efficiencies.
- Higher depreciation and...