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Whirlpool Of India Ltd. Stock Analysis

Large Cap
Evaluated by 2137 users | BSE: 500238 | NSE: WHIRLPOOL |
Consumer Durables - Domestic Appliances
Whirlpool, right from its inception in 1911 as first commercial manufacturer of motorized washers to the current market position of being world's number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Whirlpool Of India Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 44.34%28.77%24.47%19.43%26.28%24.11%23.99%21.14%20.67%20.09%
Value Creation Index 2.231.100.780.420.920.760.750.540.510.47
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,7032,6582,7732,8353,2943,4403,9414,8325,3985,993
Y-o-Y Gr. Rt.--1.7%4.3%2.2%16.2%4.4%14.6%22.6%11.7%11%
Adjusted EPS (Rs.) 13.4810.1110.5210.3217.1119.524.7227.0831.5936.04
Y-o-Y Gr. Rt.--25%4.1%-1.9%65.8%14%26.8%9.6%16.7%14.1%
Book Value per Share (Rs.) 27.9237.5447.6157.371.1591.88114.57138.48165.39196.75
Adjusted Net Profit 171128133131217247314344401457
Net Op. Cash Flow (Rs. Cr.) 205217144204300344384384402380
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Whirlpool Of India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.3%12.7%15%11%
Adjusted EPS 11.6%16.1%13.4%14.1%
Book Value per Share 24.222.619.819
Share Price 29.1% 26.5% 19.8% 13%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 43.3528.124.0919.2826.2323.7723.6820.9520.3519.5
Operating Profit Margin (%) 9.928.638.097.8810.3511.4412.5211.611.911.24
Net Profit Margin (%) 6.334.824.814.626.597.197.967.117.437.63
Debt to Equity 0000000000
Working Capital Days 96938287777779767478
Cash Conversion Cycle 5-11-12-11-15-29-34-38-32-24
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 75.00%
Institutions 14.76%
Non-Institutions 10.24%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Whirlpool Of India and arrived at the following conclusion:

Past 10 year's financial track record indicates that Whirlpool Of India is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Whirlpool Of India's performance infers:

Whirlpool Of India earnings have grown by 16.1%, whereas share price has appreciated 26.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Whirlpool Of India share prices over the last 10 years. Here is what we found out:

Whirlpool Of India share price has appreciated 22.3% annually over the past ten years.

Whirlpool, right from its inception in 1911 as first commercial manufacturer of motorized washers to the current market position of being world's number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operation in 13 countries with 11 major brand names such as Whirlpool, KitchenAid, Roper,

Whirlpool, right from its inception in 1911 as first commercial manufacturer of motorized washers to the current market position of being world's number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operation in 13 countries with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. Today, Whirlpool is the most recognized brand in home appliances in India and holds a market share of over 25%.

The company boasts of resources and capabilities beyond achievable feat of any other in the industry. Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it emerged as truly global leader in the1980s. This encouraging trend brought the company to India in the late 1980s. It forayed into the market under a joint venture with TVS group and established the first Whirlpool manufacturing facility in Pondicherry.

Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into Indian refrigerator market as well. The same year also saw acquisition of major share in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to create Indian home appliance leader of the future, Whirlpool India. This expanded the company's portfolio in the Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners.

The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features an infrastructure that is witness of Whirlpool's commitment to consumer interests and advanced technology.

It has derived its functioning principles out of an undaunted partnership with the homemakers and thus a slogan of “You and whirlpool, the world's best homemaker” dots its promotional campaigns. The products are engineered to suit the requirements of ‘smart, confident and in-control' homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions.

Product range of the company includes:

  • Refrigerator
  • Washing Machine
  • Air Conditioner
  • Microwave
  • 100% Dryers
  • Purafresh

Milestones:

  • 1908: The first automatic washer was launched to public in late 1908, by 1900 Corporation which in 1911 was renamed to Upton Machine Company.
  • 1911: Louis Upton founded the Upton Machine Company in that year to produce motor-driven wringer washers. 
  • 1916: First order of washers was sold to Sears, Roebuck & Co.
  • 1929: Upton Machine Company merged with Nineteen Hundred Washer Company of NewYork . 
  •  1948: First 'Whirlpool' brand automatic washer with dual distribution was introduced. It included two product lines one each was distributed through Sears and Nineteen Hundred.
  • 1957: The company was rechristened as ' The Whirlpool Corporation.' 
  • 1958: The company moved out of country for the first time and invested in Brazilian appliance market through purchase of equity in Multibras S.A.
  • 1968: The Elisha Gray II Research & Engineering Center was completed in BentonHarbor. In the same year the company's revenues crossed the legendary $1 billion mark for the first time.
  • 1978: Within a decade company doubled its feat of $1 billion mark and reached the $2 billion revenue level. 
  • 1986: The 'Kitchen Aid' division of Hobart Corporation was purchased.
  • 1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS Whirlpool.
  • 1989: This was a historic year since the revenues catapulted to heights of over $6 billion mark. Also, the joint venture with N.V.Philips of Netherlands called Whirlpool Europe B.V. was formed to manufacture and market appliances in Europe. 
  • 1990: The company established joint venture with Matsushita Electric Company of Japan to produce vacuum cleaners for the North American market. 
  •  1991: The company introduced and committed globally to its Worldwide Excellence System, which is a TQM program dedicated to exceeding customer expectations. The vision to globalize 'Whirlpool Corp'. was realized in the same year. 
  • 1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland, Netherlands and Belgium
  • 1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool The DC manufacturing facility of Kelvinator India was also acquired.
  • 1996: Whirlpool Washing Machines and Kelvinator India Ltd. merged together to form Whirlpool of India Ltd. 
  • 1998: This year gave birth to a new company vision that says, 'Every Home Everywhere with Pride, Passion & Performance.' 
  • 1999: Whirlpool of India crossed the milestone of 1 million sales of appliances. 
  • 2002: The ' Whirlpool Strategic Architecture ' was launched as a framework to achieve the vision. The revenues of Whirlpool Corp. soared to $10.5 billion.

Achievements/  recognition:

  • 2001: Whirlpool India registered profit & sold 1.2 million appliances. It also achieved the No.1 position in DC & FA.
  • 2002: The Aircon range was successfully launched and the Whirlpool of India acquired 6% market share. 
  • 2003: A new mission statement of 'Everybody creating loyal customers for life' was adopted. 
  •  2006: Whirlpool Corporation acquires Maytag and become the world's largest white goods company.
  • Whirlpool brand was named one of the 10 top greenest brands by U.S. consumers, according to a 2008 BrandWeek magazine survey.
  • Received the 2009 ENERGY STAR Sustained Excellence award, the company’s 10th ENERGY STAR award in 11 years.
  • 2009: Named one of the “100 Best Corporate Citizens” by Chief Responsibility Officer (formerly Business Ethics) magazine in 2009 and from 2000-2007.
  • 2009: Whirlpool was voted Product of the Year and received the award for the 'Best Innovative Product' in the popular refrigerators category. This was based on 40,000 consumers across 36 towns in India voting Whirlpool Frost Free Refrigerators with 6th sense as the Best Innovation in the Popular Refrigerator Category.
  • 2010
    -Whirlpool of India launches its Jet Chef and Family Chef Collection of Microwaves
    -Whirlpool launches 4 New Brand shops in Chandigarh
    -Whirlpool redefines washing machines in India, launches the all new Whirlpool ACE washstation'
    -Launches new brandshops in Amritsar and Jalandhar
  • 2011: Whirlpool Pondicherry Washer Facility Gold Award in Economic Times Frost & Sullivan Manufacturing Excellence Award - 2011
  • 2012:
    -Whirlpool launches a new range of domestic products
    -Whirlpool ACE Washing Machine received the Silver Medal in the prestigious international Edison Awards for being the best new product in the Lifestyle and Social Impact category.
    -ICWAI National Award for Excellence in Cost Management - Silver
    -Trophy for Export Excellence in EPO Service for outstanding export performance'
  • 2014: Whirlpool launched Protton 3-door refrigerators and 3D climate control dual fan air conditioner.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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