Accumulate Whirlpool of India; target of Rs 1600: KR Choksey

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26 Aug, 2025 12:21

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KR Choksey's research report on Whirlpool of India

Whirlpool of India Ltd (WOIL) posted its Q2FY18 results. Net revenue for Q2FY18 was at INR 11,596.7 Mn which grew by 23.5% YoY and de-grew by 28.3% QoQ. The revenue was in line with our estimates due to festive seasons and GST implementation enabled the company to sell of the inventories. EBIDTA for Q2FY18 stood at INR 1,135 Mn with margins of 9.8% which decreased by 324 bps QoQ and increased by 24 bps YoY due to higher raw material and employee cost. PAT for Q2FY18 stood at INR 734.3 Mn and PAT margin was at 6.3% which saw a decline of 187 bps QoQ and an increase of 8 bps YoY.

Outlook
Whirlpool of India Ltd, is one of the leading manufacturers and marketers of major home appliances in the country. The sales during the quarter was mainly driven by volume momentum and new launches pre-festive seasons across categories. We remain positive on the long term outlook on the demand of appliances and growth potential of WOILs business in India. Whirlpool continues to remain debt free, cash rich and fundamentally strong with RoE of 23.4% & RoCE of 21.8% in FY17. The company has expanded its product portfolio by including kitchen appliances, water purifier and air treatment. With an optimistic view, we expect revenue and PAT to grow at CAGR of 13.9% and 23.2% respectively between FY15 and FY19E. At CMP of INR 1,397 the stock is trading at P/E of 31.2x for FY19E and we have an  “ACCUMULATE” rating on the stock with target price of  INR 1,600 representing an upside of 14.5%.
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