WHIRLPOOL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Whirlpool India, a household name in home appliances, showcases balance sheet strength and brand equity — but its high PEG ratio and sluggish earnings growth point to valuation risk. Here’s a deeper dive into its fundamentals and outlook.

🧾 Financial Metrics & Profitability

ROCE: 13.0%, ROE: 9.27% — modest capital efficiency; acceptable but not stellar

EPS: ₹28.4 — decent base but not enough to justify valuation multiples

Quarterly PAT: ₹114 Cr → ₹146 Cr (+28%) but YoY Qtr Profit Var: +1.33% — flat on an annual scale

Debt-to-Equity: 0.02 — near debt-free, excellent financial hygiene

Dividend Yield: 0.36% — income cushion exists but minimal

📊 Valuation Indicators

Metric Value Commentary

P/E Ratio 49.7 Slightly below industry average (53.3) — premium pricing remains

PEG Ratio 6.84 🚨 Very high — growth doesn’t justify valuation; signals overvaluation

P/B Ratio ~4.47 Acceptable given balance sheet strength and market position

Book Value ₹311 Fair asset backing, but price well above — reflects brand premium

🏢 Business Model & Competitive Advantage

Core Products: Refrigerators, washing machines, air conditioners, kitchen appliances

Moats

Strong brand recall and wide distribution network across India

Multinational backing with R&D and technology integration

Challenges

Subdued earnings growth and muted volume expansion

Vulnerable to seasonal demand and consumer spending cycles

Decline in FII holding (-0.43%) suggests waning foreign investor confidence

📉 Technical Indicators

RSI: 51.7 — neutral; neither overbought nor oversold

MACD: 16.8 — bullish, trend turning positive

DMA Comparison

Price at ₹1,390 is near 50-DMA (₹1,347) and slightly below 200-DMA (₹1,415)

Sign of consolidation; breakout depends on volume pickup and earnings clarity

🎯 Entry Strategy & Long-Term View

Suggested Entry Zone: ₹1,340–₹1,375 — near 50-DMA, with stop-loss at ₹1,310

Target Range (12–15 months): ₹1,550–₹1,650 — assuming demand rebound and earnings lift

Investor Fit

Ideal for moderate-risk investors with preference for blue-chip consumer plays

Not suitable for growth chasers due to high PEG and flat profit growth

Low debt and brand support offer downside protection in volatile cycles

Would you like me to model its projected EPS over 2–3 years or simulate margin expansion under rising urban demand? Or compare Whirlpool with peers like Voltas, Blue Star, or Godrej Appliances to see if better value hides elsewhere? Let’s turn up the heat on this sector analysis 🔧📊

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