RIL Company Analysis on Walton Hi-Tech Industries PLC

Equity Note on Walton Hi-Tech Industries PLC

Growth estimates of consumer electronics market-RIL Company analysis reportThe electronics industry in Bangladesh is one of the fastest-growing industries in the country with great potential. Bangladesh consists of the world’s 8th largest population, where consumer spending is around USD 130 billion+ growing at 6% to 7% annually. A large number of young people who are strongly fond of fusion culture, rising of working women & nuclear families, available credit facility etc. are the main factors which are influencing electronic industry rigorously.

As per market research, the market size of the electronics industry which includes both industrial and consumer electronics was estimated to be around USD 5.29 billion at the end of 2019. The industry is expected to grow at a rate of 15% per annum and reach around USD 12 billion by 2025.

Walton Hi-Tech Industries PLC, brought the revolution in Bangladeshi Electrical & Electronic industry. The company is easily delivering their readily available products to households in Bangladesh. The company offers products such as refrigerator, freezer, air conditioner, compressor, television, electrical appliances and home appliances items. 

Brand's Market Share - company analysis WaltonWALTONHIL has captured a substantial market share and positioned itself as the market leader in the industry. Besides, WALTONHIL has recently focused on the international market and is taking various initiatives to position its brand value

Walton Sales composition - RIL company analysis on Walton Hi Tech Industries

Revenue of WALTONHIL accounts Tk 6,995 crore for the FY’20-21, while it was Tk 4,108 crore in the previous year. As a result, the revenue has increased by 70% YOY. Profit after tax for the FY’ 20-21 amounting of Tk. 1,639 crore while it was Tk 726 crore in the previous year. The company managed to sustain its volume growth in the year in traditional product lines such as refrigerators and compressors which grew by 86.47%, Electrical appliances by 104.86%, Home appliances by 72.38% and Television by 9.85%.

Though WALTONHIL’s average value is BDT 763, if more free float shares are released in the market (as per BSEC rules) in near future, it will dilute more. Fundamentally, if the economy continues to grow faster, the consumer market is likely to expand more which will trigger more business potential for the company.

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