Sharescart Research Club logo ×
Screener Research Unlisted Startup Funding New IPO New

Akshita    


New Delhi, India

Akshita is an equity research analyst working with a US Research firm and an aspiring CFA charter. With a keen interest in financial modeling and valuation, she prepares exemplary-detailed research reports.

Read More..
Contributor since: 2022

61

Articles

122

Likes

51

Followers

WHIRLPOOL

Comments: 0 | Likes: 1 | Current Price: ₹ 1939.95


Equity Research: Whirlpool Of India Limited

Whirlpool of India Ltd is an totally India-based producer of domestic home equipment. The Company is in general engaged in manufacturing and buying and selling of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and small home equipment and caters to both domestic and worldwide markets. It provides services in the vicinity of product improvement, and procurement services to Whirlpool Corporation, The United States and other group businesses. The Company additionally offers Water Purifiers, Built-In Appliances and Induction cooktop. The Company gives add-ons for Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and Water Purifiers. It gives Surge Protector and Affresh Accessories. Its plants are positioned at Faridabad, Haryana; Rajangaon, Pune, and Thirubhuvanai Village, Puducherry.


ABOUT

SHAREHOLDING PATTERN

In Q4 FY24, Whirlpool Corporation, the promoter company, divested 24% of its stake in the Indian subsidiary. Despite this divestment, Whirlpool Corporation maintains a majority interest through a wholly-owned subsidiary. Foreign Institutional Investors (FII) increased their stake from 3.64% in Q3 FY24 to 6.48% in Q4 FY24, while Domestic Institutional Investors (DII) increased their stake from 12.63% to 33.68% during the same period. Notably, mutual fund holdings rose significantly from 11.12% to 31.14%, and insurance holdings from 1.46% to 2.40%.

Top Public Shareholders:

  • SBI Small Cap Fund: 9.72%
  • Aditya Birla Sun Life Trustee Pvt. Ltd.: 6.00%
  • Kotak Emerging Equity Scheme: 4.26%
  • UTI-MNC Fund: 2.96%

CONCALL SUMMARY

Market Focus and Performance

  • Strategic Focus: India remains a key market for growth due to its potential opportunities.
  • Performance Impact: Revenue and profit were affected by COVID-19, increased competition, and commodity costs.
  • Developments: New product launches and enhanced warranty offerings.
  • Market Trends: Positive market share momentum in recent months.
  • Q3 2023 Financials: Double-digit revenue growth, improved EBITDA, and PBT.

Business Strategy

  • Growth Focus: Emphasis on sustainable growth through consumer insights, product leadership, and supply chain quality.
  • Defensive Strategies: Implementing P4G to mitigate market volatility.
  • Execution Excellence: Improving margins and sales execution, including a retail executive program.
  • Long-term Guidance: Targeting high single-digit revenue CAGR with similar PBT margin growth.

Operational Updates

  • Manufacturing: Strong footprint with facilities in Faridabad, Pune, and Puducherry.
  • Sales Network: Pan-India distribution and service network to bolster retail demand.
  • Cash Generation: Improved working capital and strengthened balance sheet.
  • Export Focus: Monitoring export opportunities, though not a primary focus in the near term.

Product Innovation and Quality

  • Diversification: Focus on innovation in premium segments.
  • Competitive Position: Targeting competitors with brand inspiration and supply chain resilience.
  • Distribution Expansion: Opportunities for vertical and horizontal growth.
  • Quality Commitment: Maintaining high product quality despite market challenges.
  • R&D Investment: Continued focus on innovation and consumer insights.
  • Elica Portfolio: Addressing competitive pressures with quality and innovation.
  • New Product Lines: Potential within existing categories.

Financial Updates

  • Stake Sale: Whirlpool Corporation plans to sell up to 24% stake to retire debt.
  • Royalty Fees: No expected changes in royalty and technical know-how fees.
  • Cost Management: Monitoring material costs for maximum impact.

FINANCIALS

  • Sales Growth: FY23 net sales reached ₹6,668 crore, an 8% YoY growth. In 9M FY24, net sales were ₹5,097 crore, a 2% YoY growth, affected by competitive pricing adjustments.
  • EBITDA: FY23 EBITDA was ₹370 crore, an 11% decline YoY, due to higher input costs and expenses. 9M FY24 EBITDA was ₹259 crore, a 2% decline YoY, with efforts to restore competitiveness.
  • PAT: FY23 PAT was ₹224 crore, a 60% YoY decline, with a 3.4% PAT margin. 9M FY24 PAT was ₹145 crore, a 10% decline YoY, affected by regulatory changes.
  • ROCE: FY23 ROCE was 9.08%, impacted by a decline in operating profit.
  • ROE: FY23 ROE was 6.64%, influenced by lower profitability.
  • Cash Flows: FY23 generated ₹270 crore CFO, with high inventories. CFI saw a ₹101 crore outflow due to property and equipment purchases. Dividend payments and lease repayments led to a ₹101 crore outflow from financing activities.
  • Working Capital Cycle: Maintained a negative working capital cycle due to higher payable days.
  • Free Cash Flow: FY23 free cash flow per share was ₹11.60, with a ₹181 crore capex for new and upgraded manufacturing facilities.

MANAGEMENT

Management remains focused on new product launches, rural reach expansion, and cost optimization. Optimism prevails for a rebound in consumer sentiment, despite global uncertainties. Key appointments include Debopriyo Sengupta as Vice President of Human Resources and Amit Aggarwal as Head of Information Technology.

SECTOR OVERVIEW

  • Challenges: The consumer durables industry faced inflationary pressures and weakened demand due to interest rate hikes.
  • Premium Products: Continued demand growth, whereas mass products saw muted demand due to lower disposable income in semi-urban and rural areas.
  • Competition: Intense competition from new entrants and established players, driven by aggressive pricing and sales investments.
  • Government Initiatives: Programs like rural electrification, affordable housing, and PLI schemes are expected to support the sector.

PEERS

VALUATION AND FUTURE OUTLOOK

The management anticipates improved full-year revenue growth compared to the first nine months of FY24. Strategic imperatives include product leadership, premiumization, supply chain resilience, enhanced sales execution, and industry-leading growth. The focus remains on strengthening the brand, expanding rural reach, and leveraging the SAARC markets for export growth. Potential risks include higher input costs, delays in product launches, increased competitive pressure, and further market share losses.

Valuation: 

  • PE Ratio: Currently trading at a TTM PE multiple of 98.42x.
  • Dividend Yield: FY23 equity dividend was ₹5 per share, with a payout ratio of 28.96%.

Data from:

Sharescart.com

Company website

Disclosure:

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.

Articles

Updated : Nov, 2024

From Coal to Clean: Tata Power’s Roadmap to Renewa...

Imagine a future where every kilowatt powering your devices, cooling your home, or lighting your workplace comes from clean, renewable energy. One of the leaders, Tata Power is rewriting its playbook, from coal-centric beginnings to a future dominated ...

Author : LEKISHA KATYAL

Updated : Nov, 2024

Waaree Renewable shines among all green Stocks with ...

Investors are buzzing about Waaree Renewable Technologies: trading at a fraction of its potential, boasting robust revenue growth projections, and a PE ratio that suggests it’s still flying under the radar! Waaree Renewable Technologies is position...

Author : Ramya Naidu

Updated : Oct, 2024

Kaynes Technology Forays into Semiconductors!

Take a moment to consider how much our world revolves around electronics. From the phone in your pocket to the car you drive, electronics are embedded in nearly every aspect of daily life. At the heart of it all is the semiconductor—the tiny but migh...

Author : LEKISHA KATYAL

Updated : May, 2024

Equity Research: Whirlpool Of India Limited

Whirlpool of India Ltd is an totally India-based producer of domestic home equipment. The Company is in general engaged in manufacturing and buying and selling of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and small home equipme...

Author : Akshita

Updated : May, 2024

Tata Capital Unveiled: Strategies, Success, and Futu...

Tata Capital Limited, a subsidiary of Tata Sons Pvt Ltd, is a financial services company that operates in commercial finance, wealth services, consumer finance, and Tata Cards. Additionally, it has a business in distribution and marketing. This company...

Author : Nikhil Singh

Updated : May, 2024

Equity Research: Sheela Foam Limited

Sheela Foam Ltd, formerly Sheela Foam Private Ltd, manufactures mattresses underneath the Sleepwell logo. The Company manufactures other foam-based home comfort products focusing primarily on Indian retail consumers, in addition to technical grades of ...

Author : Akshita

Updated : May, 2024

Equity Research: Whirlpool Of India Limited

Whirlpool of India Ltd is an totally India-based producer of domestic home equipment. The Company is in general engaged in manufacturing and buying and selling of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and small home equipme...

Author : Akshita

Updated : Oct, 2023

EQUITY RESEARCH: Hindware Home Innovation Ltd

Somany Home Innovations Ltd. (SHIL) is a newly created Corporate Entity which become demerged from HSIL Ltd, vastly regarded with the aid of its Brand Hindware, a leading name inside the Indian marketplace. SHIL is centred on servicing end-consumers in...

Author : Akshita

Updated : Feb, 2023

Equity Research: Borosil Limited

Borosil limited is poised for a sustainable growth, with increasing CAGR of 27% from FY23E -FY25E.

Author : Shalom Martin

Updated : Dec, 2022

Equity Research: TTK Prestige Limited

TTK Prestige Limited (TTK) a company which includes Prestige, Judge, and Prestige Xclusive as its brands largely operates in the Kitchen Appliances section and have a wide range of products including pressure cookers, cookware, gas stoves and domestic ...

Author : Akshita

Updated : Jun, 2022

Equity Research Report: Sakar Healthcare

Sakar Healthcare Ltd is engaged in manufacturing of pharmaceutical formulations in the form of liquid injectables, tablets/ capsules, oral liquid syrups, dry powder injectables and syrups. Presently, its domestic sales accounts for 31% of revenues and ...

Author : Akshita

Updated : Jun, 2022

EQUITY RESEARCH REPORT: NEWGEN SOFTWARE

Newgen Software Technologies is a global software Company and is engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow au...

Author : Akshita

Updated : Jun, 2022

Nifty and Bank Nifty Tumbles Due to Weak Global Cues...

Nifty and Bank Nifty tumbles due to weak global cues lead by higher inflation data, higher crude oil prices and weakening currency.

Author : Shalom Martin

Updated : Jun, 2022

Equity Research Report: Shree Renuka Sugar

Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refineries in the world.

Author : Akshita

Updated : Jul, 2022

Equity Research : Tata Consumer Products Limited

TCPL future ambitions remain aggressive, At 17% EPS CAGR over FY22-25e, TCPL should deliver industry-leading growth within indian FMCG.

Author : Shalom Martin

Updated : Jul, 2022

Equity Research: Birlasoft Ltd

Birlasoft, a small-cap IT company, has an upside potential of 35%. The company’s repeated demonstration of ‘walking the talk’ makes us believe that it is on track to achieve its stated target of USD1bn revenue by FY25E.

Author : Shalom Martin

Comments

IPO

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....