February 14, 2017 / 18:16 IST
While we have a positive long-term bias on the stock, valuations factor in an ambitious 20% sales growth over the next decade followed by 5% terminal growth (assuming FCF/PAT of 90%, CoE of 12.5%). Historically, WHIRL has posted 10%/13%/6% CAGR in the last 20Y/10Y/5Y.
Outlook
Whirlpool net sales at Rs 9.7 bn, flat YoY (though above our estimate of - 5% YoY de-growth). Gross margin up 260 bps at 52.9%; EBITDA margin up 200 bps YoY to 8.7%, above our estimate of 7%. PAT at Rs 554 mn was up 44% YoY. We trim our FY17 sales growth to 13% from 15% to factor in weak Q3 performance; maintain FY18. Upgrade to HOLD on stock price correction. TP stands at Rs 960 (30x FY18E EPS).
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