We attended Whirlpool India Ltds (WIL) analyst meet held in Gurgaon. Management appeared very confident of taking WIL on the next level by aggressively deploying all its ammunition in the market place by extending its product portfolio and distribution reach.Microsec Research initiated coverage on WIL in November 2012 at a price of INR 171 with strong vision of growth, which the management now projects. The management is projecting at 35.0% revenue CAGR Vs our estimate of 21.2%. The expected increase in discretionary spending, low penetration, and an uptick in the consumer sentiment provides revenue visibility over the next couple of years, coupled with company’s debt‐free balance sheet with a cash surplus of INR 4.14 bn provides an attractive investment opportunity. WIL expected to post an EBITDA and a PAT CAGR of 37.5%, 43.4% respectively.Furhermore,INR 4.9 Bn of cash generation, minuscule capex in the next three years and healthy return ratio of 26% demands stocks rerating.Therfore,we have maintained our “STRONG BUY” recommendation on the stock with a target price of INR 800.
