ICICI Securities research report on Whirlpool of India
Whirlpool India’s Q4FY25 print was strong with likely market share gains in key categories of refrigerators and washing machines. With negligible price hikes, we believe revenue growth in Q4FY25 was largely volume driven. It also expanded EBITDA margins in-spite of lower gross margin. While higher scale of operations (operating leverage) helped, we believe there is possibility of lower brand building spends. With the parent planning to sell 31% stake in Whirlpool India and reducing its stake to 20%, we believe there is a possibility of multiple scenarios that may or may not be favourable for minority shareholders. As Whirlpool India has a strong net-cash balance sheet and also an established distribution network, we do not model any near-term business concerns. We shall closely track the key buyers (financial/strategic) when the parent sells its 31% stake. Maintain SELL.
Outlook
We model Whirlpool to report revenue and PAT CAGRs of 12% and 11.6%, respectively, over FY25–27E, and FCF generation to remain strong. We maintain SELL with a DCF-based revised target price of INR 980 (implied target P/E 28x FY27E EPS; earlier INR 930).
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