WHIRLPOOL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | WHIRLPOOL | Market Cap | 12,504 Cr. | Current Price | 986 ₹ | High / Low | 1,474 ₹ |
| Stock P/E | 40.8 | Book Value | 283 ₹ | Dividend Yield | 0.51 % | ROCE | 12.7 % |
| ROE | 9.17 % | Face Value | 10.0 ₹ | DMA 50 | 890 ₹ | DMA 200 | 1,042 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.30 % | PAT Qtr | 44.4 Cr. | PAT Prev Qtr | 20.9 Cr. |
| RSI | 70.6 | MACD | 39.0 | Volume | 4,03,541 | Avg Vol 1Wk | 5,82,131 |
| Low price | 756 ₹ | High price | 1,474 ₹ | PEG Ratio | 3.67 | Debt to equity | 0.07 |
| 52w Index | 32.0 % | Qtr Profit Var | 65.8 % | EPS | 22.6 ₹ | Industry PE | 46.7 |
📊 Financials: WHIRLPOOL shows moderate efficiency with ROCE at 12.7% and ROE at 9.17%. Debt-to-equity ratio is very low (0.07), ensuring financial stability. EPS of ₹22.6 supports earnings, while quarterly PAT improved significantly (₹20.9 Cr → ₹44.4 Cr, +65.8%), indicating operational recovery. Cash flows remain stable, though margins are modest.
💹 Valuation: Current P/E of 40.8 is slightly below industry average (46.7), suggesting fair valuation. PEG ratio of 3.67 indicates growth is already priced in. P/B ratio (~3.5) is elevated relative to book value. Dividend yield of 0.51% provides limited income support.
🏢 Business Model & Advantage: WHIRLPOOL operates in consumer durables, benefiting from strong brand equity, distribution networks, and demand recovery. Competitive advantage lies in brand recognition and product diversification, though profitability metrics remain modest.
📈 Entry Zone: Attractive accumulation near ₹870–₹920 (close to DMA 200 support). Current price (₹986) is slightly above fair entry, with resistance at ₹1,050–₹1,100.
⏳ Long-Term Holding: Suitable for 2–3 year horizon given stable fundamentals and improving earnings. Partial profit booking advised near resistance levels to manage valuation risks.
Positive
- Low debt-to-equity (0.07)
- Quarterly PAT recovery (+65.8%)
- EPS of ₹22.6 supports valuation
- DII holdings increased (+0.30%)
Limitation
- Moderate ROCE (12.7%) and ROE (9.17%)
- PEG ratio of 3.67 indicates expensive growth
- Dividend yield of only 0.51%
- RSI at 70.6 indicates overbought conditions
Company Negative News
- FII holdings decreased (-0.43%), showing reduced foreign investor confidence
Company Positive News
- Strong quarterly profit growth (+65.8%)
- DII inflows (+0.30%) reflect domestic institutional support
Industry
- Industry P/E at 46.7 reflects moderate sector valuation
- WHIRLPOOL trades slightly below industry average, offering fair valuation
Conclusion
WHIRLPOOL is financially stable with improving earnings and strong brand presence, but modest return ratios and high PEG limit long-term compounding potential. Entry is safer near ₹870–₹920, with profit booking advised near ₹1,050–₹1,100. Suitable for medium-term investors with a 2–3 year horizon.