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Buy Whirlpool of India; target of Rs 1375: KR Choksey

KR Choksey is bullish on Whirlpool of India has recommended buy rating on the stock with a target price of Rs 1375 in its research report dated May 22, 2017.

May 24, 2017 / 16:17 IST
     
     
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    KR Choksey's research report on Whirlpool of India

    We believe, the valuations are attractive given the industry peers such as Indo count and Welspun trading at 12.5x & 10.8x FY19 estimates. Further, aforementioned rationales favor for the robust financial growth and hence assigning a p/e multiple of 11x on FY19, we have arrived a target price of INR 115, a potential upside of 39% from CMP 83. We recommend a BUY rating on the stock.

    Outlook

    WOIL is a zero debt company and it is generating high RoE of 23.4% and RoCE of 21.8%. At CMP of INR 1,158 the stock is trading at P/E of 30.8x for FY19E, we expect the Revenue and PAT to grow at CAGR of 13.9% and 23.2% respectively between FY15 and FY19E. We have a “BUY” rating on the stock with Target Price of INR 1,375 representing an upside of 18.7%.

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    Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    first published: May 24, 2017 04:17 pm

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