10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Tuesday, November 17, 2009

Whirlpool of India Ltd:Buy/hold/sell,future growth prosepects and outlook,analysis and recomendation,latest news/views/results

Scripscan:Whirlpool of India Ltd

Story:The company plans to enter small towns with an investment of Rs 100 crore a year over the next few years. Expansion into the Tier 2 and Tier 3 markets at a time when consumer spending is rising may help the company sustain robust top-line growth.Whirlpool of India turned profitable at the net level only in 2007-08. Growth in profits has continued at an impressive pace since then. In FY09, profits after tax doubled to Rs 70 crore. Strong sales volumes, rising revenues from after-sales services and a tight rein on costs have helped Whirlpool’s profit growth in recent years.Rigorous brand-building activities have enabled the company to sustain a robust 17 per cent compounded annual sales growth over the last five years. Microwave ovens have been the fastest growing segment with volumes growing almost 50 per cent on an annualised basis between 2005 and 2009.Other segments in the order of growth are air conditioners, washing machines and refrigerators.FY09 was a challenging year for the company with sales growing at a slower space, due to the cutback in consumer spending and higher commodity prices which impacted input costs. However, the situation has improved over the last two quarters.While profit margins have expanded on falling raw material costs, the April-June quarter saw a 13 per cent sales growth and the July-September period saw a strong 32 per cent growth, signalling a clear revival in consumer spending.Whirlpool of India is all set to tap the rising demand for more affordable white goods, from the urban centres as well as the tier-II centres. The company plans to raise marketing spends on product development and advertising and promotions, while enhancing penetration in the smaller urban markets.Better cash flows, with improved margins and the falling debt burden (0.6:1) have freed up funds for brand building activities. The company’s operating costs have declined by 3 percentage points in FY09 on cost reduction initiatives.Continuing the trend of strong growth through the downturn, the company saw its September 2009 quarter sales (volume) expand by an impressive 37 per cent. The visible uptrend in consumer durable sales in recent months, the company’s entrenched position in the key durable segments and its improving profitability suggest that the stock is a good addition to the defensive investor’s portfolio.At Rs 119, the stock is trading at 15 times its trailing 12-month earnings.

Source:BL Research Bureau

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner