MICROSEC Capital recommends 'Strong  Buy' on Whirlpool of India with a target price of Rs 580 a share i.e. an upside of 32% from the market price.

Commenting on the investment rationale, MICROSEC Capital, said, "Net Sales up by 19.2% YoY and 60.2% QoQ on launch of new products and better sales volume.  Despite 15% increase in raw material cost which constitutes ~70% of the total expenditure, EBITDA  grew by 57.4% YoY. It was up by 118.9% QoQ.

EBITDA margins expanded by 300bps YoY and by 350bps QoQ on better cost management. PAT excl exceptional items grew by 67.4% YoY and 133.5% QoQ on lower depreciation and interest cost.

The management has targeted up to 12% growth in turnover at Rs 37 billion in the current fiscal. Consequently, post this performance the company deserves a higher growth rate in future."

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