Mehabe score: 1 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Whirlpool of India is a leading manufacturer of home appliances. It is primarily engaged in manufacturing and trading of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens, built in and Small appliances and caters to both domestic and international markets. The Company also provides services in the area of product development and procurement services to Whirlpool Corporation, USA and other group companies.(Source : 202003 Annual Report Page No:99)Site:WHIRLPOOL
Market Cap:
Rs 27,807 cr
Price:
2192.0
Trading pe:
93.7x
Book-value:
207/share
Div yield:
0.23 %
Earning yield:
1.65%
Face-value:
10.0/share
52week high:
2787.00
52week low:
1980.10
Technical Analysis
Stock trades at 2192.0, above its 50dma 2187.4. However it is trading below its 200dma 2218.97. The stock remains weak though short term bullish momentum supports price action. It needs to close above 2218.97 for bullish price action to continue
The 52 week high is at 2787.00 and the 52week low is at 1980.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Stock is trading at 10.56 times its book value
Competition
– The industry trades at a mean P/E of 48.6x. Whirlpool India trades at the industry’s max P/E of 93.67x. WHIRLPOOL trades at a P/E of 93.7x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 9.0. WHIRLPOOL has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 10.2%. The max 1- month return was given by IFB Industries: a return of 27.87 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1779.0 cr compared to Rs 1354.0 cr for period ended Mar 2020, a rise of 31.4%
Operating Profits reported at Rs 190.0 cr for period ended Mar 2021 vis-vis 137.0 for period ended Mar 2020 .
Operating Margins expanded 56.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 9.76 compared to Rs 5.07 for previous quarter ended Dec 2020 and Rs 6.89 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5900.0 cr for period ended Mar 2021 vis-vis sales of Rs 5993.0 cr for the period ended Mar 2020, a fall of 1.6%. The 3 year sales cagr stood at 6.9%.
Operating margins shrank to 9.0% for period ended Mar 2021 vis-vis 11.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 333.0 cr for period ended Mar 2021 vis-vis sales of Rs 476.0 cr for the period ended Mar 2020, falling 42.9%.
Company reported a poor Net Profit CAGR of -1.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 20.0% compared to 21.0% over the last 3 Years. – The stock has given a return of 8% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is -40% vis-vis a compounded profit growth of 15% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 3.38% vis-vis 3.35% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 10.61% vis-vis 10.37% for Dec 2020
Conclusion
– is almost debt free. – Stock is trading at 10.56 times its book value
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 2187.4 and is trading at 2192.0, thus bullish price action wise.
