WHIRLPOOL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | WHIRLPOOL | Market Cap | 10,729 Cr. | Current Price | 846 ₹ | High / Low | 1,474 ₹ |
| Stock P/E | 41.4 | Book Value | 289 ₹ | Dividend Yield | 0.59 % | ROCE | 10.0 % |
| ROE | 7.25 % | Face Value | 10.0 ₹ | DMA 50 | 890 ₹ | DMA 200 | 1,022 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.30 % | PAT Qtr | 66.6 Cr. | PAT Prev Qtr | 44.4 Cr. |
| RSI | 39.8 | MACD | -13.1 | Volume | 2,91,010 | Avg Vol 1Wk | 4,16,378 |
| Low price | 756 ₹ | High price | 1,474 ₹ | PEG Ratio | 3.47 | Debt to equity | 0.09 |
| 52w Index | 12.6 % | Qtr Profit Var | -37.0 % | EPS | 19.1 ₹ | Industry PE | 45.4 |
📊 Core Financials:
WHIRLPOOL has shown moderate financial performance with quarterly PAT rising from 44.4 Cr. to 66.6 Cr., though overall profit variation is negative (-37%). ROCE at 10.0% and ROE at 7.25% are weak, reflecting limited efficiency. Debt-to-equity is low at 0.09, indicating a strong balance sheet. EPS stands at 19.1 ₹, supported by consistent but modest profitability.
💹 Valuation Indicators:
The stock trades at a P/E of 41.4, slightly below the industry average of 45.4, suggesting fair valuation. P/B ratio is ~2.93 (Price 846 ₹ / Book Value 289 ₹), which is reasonable. PEG ratio of 3.47 indicates growth is expensive relative to earnings. Intrinsic value appears close to current levels, offering limited margin of safety.
🏢 Business Model & Competitive Advantage:
WHIRLPOOL operates in consumer durables with strong brand recognition and global presence. Its competitive advantage lies in scale, brand loyalty, and diversified product offerings. However, profitability metrics are weaker than peers, limiting its edge in efficiency.
🎯 Entry Zone & Long-Term Guidance:
Current price (846 ₹) is below both 50 DMA (890 ₹) and 200 DMA (1,022 ₹), showing bearish momentum. RSI at 39.8 indicates oversold conditions, while MACD (-13.1) confirms negative momentum. A good entry zone would be 820–840 ₹ if undervaluation emerges. Long-term holding is possible due to brand strength, but weak profitability and high PEG ratio warrant caution.
Positive
- 📈 Quarterly PAT improved sequentially (66.6 Cr. vs 44.4 Cr.).
- 💰 Low debt-to-equity (0.09).
- 🌍 DII holdings increased (+0.30%).
- 📊 Strong brand presence in consumer durables.
Limitation
- ⚠️ Weak ROCE (10.0%) and ROE (7.25%).
- 📉 PEG ratio high (3.47), growth expensive.
- 📉 Dividend yield modest at 0.59%.
- 📉 FII holdings reduced (-0.43%).
Company Negative News
📰 No major negative news reported recently, but profitability metrics remain weak and valuations are stretched.
Company Positive News
📰 Quarterly earnings improved with PAT rising to 66.6 Cr. DII holdings increased, reflecting domestic investor confidence.
Industry
🏭 Industry P/E stands at 45.4, slightly higher than WHIRLPOOL’s valuation. The consumer durables sector remains competitive, driven by demand for appliances and lifestyle products, but margins are under pressure.
Conclusion
✅ WHIRLPOOL is financially stable with strong brand recognition and low debt. However, valuations are stretched, and profitability metrics are weaker compared to peers. Best suited for cautious long-term investors who can accumulate near 820–840 ₹. Short-term traders should remain cautious due to bearish technical signals despite brand strength.
Would you like me to extend this into a brand strength analysis to evaluate how WHIRLPOOL’s positioning compares with other consumer durable leaders?