Whirlpool of India Q4FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | May 26, 2016, midnight


SYNOPSIS

  • Whirlpool of India Limited headquartered in Gurgaon, is one of the leading manufacturers and marketers of major home appliances in the country.
  • The company achieved a turnover of Rs. 1114290 million for the 4th quarter of the FY 2016-17 as against Rs. 9347.30 million in the corresponding quarter of the previous year, an increase of 19.21%.
  • During the quarter, net profit increased by 7.36% to Rs. 743.80 million from Rs. 692.80 million in the corresponding quarter ending of previous year.
  • During the quarter, EBIDTA stood at Rs. 1413.90 million as against Rs. 1218.70 million in the corresponding period of the previous year, up by 16.02%.
  • Profit before tax (PBT) stood at Rs. 1159.20 million in Q4 FY17 against Rs. 998.90 million in the corresponding quarter of the previous year, up by 16.05%.
  • EPS of the company stood at Rs. 5.86 in Q4 FY17 against Rs. 5.46 in the corresponding quarter of the previous year.
  • Whirlpool of India Ltd has recommended Final Dividend of Rs.3 per equity share of the face value of Rs. 10/- each (30%) for the financial year 2016-2017.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 19% over 2016 to 2019E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 1193.10, the stock P/E ratio is at 40.73 x FY18E and 35.23 x FY19E respectively.
  • Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 29.29 and Rs. 33.87 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 20% over 2016 to 2019E respectively.
  • On the basis of EV/EBITDA, the stock trades at 20.92 x for FY18E and 17.85 x for FY19E.
  • Price to Book Value of the stock is expected to be at 8.16 x and 6.63 x for FY18E and FY19E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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