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

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%.