Whirlpool of India Ltd. share price target

Whirlpool of India (Whirlpool) reported weak quarter with revenue decline of 3.8% YoY due to high base of Q2FY25, likely high inventory at beginning of the quarter and demand softness in summer products.

Other income to PBT is ~40% in FY25. The valuation multiple (P/E) based on core business earnings, i.e., excluding cash and tax-adjusted other income, stands at 71x on FY25 earnings. The company gained market
shares in both washing machine and refrigerators in FY25, despite a highly competitive landscape.

Whirlpool India’s Q4FY25 print was strong with likely market share gains in key categories of refrigerators and washing machines. With negligible price hikes, we believe revenue growth in Q4FY25 was largely volume driven.

Whirlpool India reported a strong set of numbers in Q3FY25 with healthy revenue growth of 11% coupled with market share gains.

Takeaways from Q2FY24 results: (1) Weakness in consumer demand has continued in Q2FY24 and hurt volume growth. (2) The company has cut prices in order to protect volumes (DCF accretive). (3) Resilient performance in Elica. While correction in input prices is aiding gross margins, its benefit is partly offset by higher ad-spends (in our view).

While Whirlpool’s Q1FY24 was muted (as expected), we note three positives (1) Elica has continued to report strong revenue growth (19% YoY) led by strong product portfolio expansion and integration with supply chain of Whirlpool, (2) In our view, Whirlpool’s EBITDA margin has likely bottomed out in H1CY23.

While Whirlpool’s Q4FY23 performance was below our estimates, we note (1) there is sequential recovery in gross margins over past quarters and (2) Elica has maintained double digit growth rates with improvement in EBITDA margins. We are also enthused by the parent’s India focus.

Steep competitive pressures have impacted Whirlpool’s Q3FY23. It reported revenue and adjusted PAT decline of 15.5% and 43.7%, respectively. We note the trade/ consumer discounts in white goods continue to remain high and it is likely to hurt margins in Q4FY23 as well as H1FY24.

Whirlpool’s Q2FY23 revenues were flat YoY, implying volume decline in our view. Three-year revenue CAGR works out to 5%.

Revenues of Whirlpool grew 55.2% in Q1FY23, on a favorable base of covid- impacted Q1FY22.

Whirlpool of India (Whirlpool) reported decade low return ratios in FY22, as its PAT margin suffered a blow from input material inflation. The premium and mid-premium segments did well but entry-level products were impacted due to the high inflationary period.

Whirlpool (WHIRL)'s 3QFY22 revenue came in flat YoY and was 13% below our estimate. The two-year revenue CAGR stood at 6%. The industry experienced 14% volume decline (DC Refrigerator stood at -20%, FF Refrigerator at -6%, Top-load Semi-automatic Washer at -20%, and Top-load Fully Automatic Washer at -4%). However, as indicated by the management, WHIRL has gained 100bp market share every year over the past five years. It also gained market share in 3QFY22. It is also expanding its capacity and...

of growing faster than the industry while maintaining double digit margins by 1) increasing share of premiumisation within product mix 2) develop product leadership through relevant innovation by leveraging parent's technological prowess 3) increase digital spends 4) cost efficiency program 4) improve GTM reach & extraction and 5) pricing actions. WHIRL remains bullish on the Indian Consumer Durable prospects given 1) low penetration level across categories 2) shortening replacement cycle 3) increasing consumer affordability and 4) appliances now being viewed as a necessity. WHIRL has...

Whirlpool (WHIRL)'s 2QFY22 revenue came in flat YoY and was 11% below our estimate. The two-year revenue CAGR stood at 7%, weaker v/s peers. While demand improved in the mid and premium segments, it was impacted by supply-side volatility. Flat revenue growth implies negative volume growth, likely in entry-level segments. This poses a risk to consumption demand and makes 3QFY22 a key test for the same. While the gross margin contracted 460bps YoY, EBITDA margin compression stood at 330bps. Thus, EBITDA stood 29% below our estimate, with margins...

We attended Whirlpool of India's (WHIRL) AGM wherein the management remained confident of growing faster than the industry while maintaining double digit margins by 1) increasing share of premiumisation within product mix 2) develop product leadership through relevant innovation by leveraging parent's technological prowess 3) increase digital spends 4) cost efficiency program 4) improve GTM reach & extraction and 5) pricing actions. Although with near term being disrupted by Covid, WHIRL remains bullish on the Indian...

Two-year revenue CAGR came in strong at 15%, best among peers Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...

the industry and gain market share as it continues to 1) Refresh product portfolio 2) Increase distribution and brand investments 3) increased focus on emerging categories like water purifier, AC and Kitchen Hoods and Hobs and 4) capacity expansion across categories. WHIRL is focused on profitable growth and expects demand to bounce back led by 1) low penetration level across categories 2) rising electrification and 3) increasing consumer affordability. WHIRL is investing to create next legs of growth by increasing presence in Air Conditioners/Water Purifiers/Elica JV. We believe new...