WHIRLPOOL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 18 Dec 25, 02:55 pm

Fundamental Rating: 3.4

📊 Core Financials: Whirlpool shows weak recent performance with quarterly PAT dropping sharply to 20.9 Cr from 135 Cr (-49.8% variation). Profit margins are modest, with ROCE at 12.7% and ROE at 9.17%, reflecting average capital efficiency. Debt-to-equity ratio of 0.07 indicates negligible leverage, ensuring financial safety. Cash flows remain supported by scale, but earnings volatility is a concern.

💹 Valuation Indicators: Current P/E of 40.6 is below industry average (49.3), suggesting relative undervaluation. P/B ratio ~3.3 (923 ÷ 283) reflects fair pricing. PEG ratio of 3.65 highlights valuation stretched relative to growth. Intrinsic value appears lower than current market price, signaling caution for fresh entry.

🏢 Business Model & Competitive Advantage: Whirlpool operates in consumer durables, with strong brand recognition and global presence. Competitive advantage lies in brand trust and distribution reach. However, earnings volatility and modest return ratios limit overall health compared to peers despite strong market positioning.

🎯 Entry Zone Recommendation: Attractive entry zone lies near 880–920 ₹ (close to 52-week low and below DMA 50). Current price (923 ₹) is near fair accumulation zone; accumulation is better on dips.

📈 Long-Term Holding Guidance: Suitable for cautious long-term holding due to brand strength and sectoral demand. However, stretched PEG ratio and sharp profit decline suggest limited compounding potential unless profitability stabilizes.

Positive

• 📈 Strong brand recognition and global presence
• 💰 Low debt-to-equity (0.07), ensuring financial safety
• 📊 FII holdings increased (+0.83%), showing foreign investor confidence

Limitation

• ⚠️ Quarterly PAT collapsed (-49.8% variation)
• 📉 Modest ROCE (12.7%) and ROE (9.17%)
• 📊 PEG ratio of 3.65 highlights stretched valuation relative to growth
• 🔻 DII holdings decreased (-0.24%), showing reduced domestic confidence
• 📉 Weak technical indicators (RSI 27.0, MACD -84.8)

Company Negative News

• 📉 Sharp decline in quarterly profits (135 Cr → 20.9 Cr)
• ⚠️ Technical weakness with RSI near oversold zone

Company Positive News

• 📈 Strong brand presence in consumer durables
• 💹 FII holdings increased (+0.83%), reflecting foreign confidence

Industry

• 🏭 Industry P/E at 49.3, slightly higher than Whirlpool’s valuation
• 📊 Consumer durables sector remains resilient, but profitability is critical for valuation comfort

Conclusion

✅ Whirlpool is fundamentally stable with strong brand presence and low debt. However, sharp profit decline and modest return ratios limit upside potential. Best strategy: accumulate near 880–920 ₹ for margin of safety. Long-term holding is viable only if profitability stabilizes and earnings recover.

Would you like me to extend this into a peer benchmarking overlay comparing Whirlpool against other consumer durable companies, or a basket scan highlighting undervalued peers for sector rotation?