WHIRLPOOL - Investment Analysis: Buy Signal or Bull Trap?

Last Updated Time : 19 Sept 25, 2:16 pm

Investment Rating: 3.5

📊 Fundamental Analysis

Valuation

P/E Ratio: 54.8 vs Industry PE of 56.8 — fairly valued, but still expensive given modest growth.

PEG Ratio: 4.93 — high, indicating earnings growth is not keeping pace with valuation.

Price to Book: ~4.86 — premium, typical for branded consumer durable companies.

Profitability

ROCE: 12.7% and ROE: 9.17% — moderate, not ideal for long-term compounding.

EPS: ₹24.8 — decent earnings base.

Quarterly PAT Growth: ₹106 Cr. to ₹135 Cr. — modest improvement, but YoY growth is flat (0.78%).

Dividend Yield: 0.37% — minimal, not attractive for income-focused investors.

Debt to Equity: 0.08 — very low leverage, excellent for financial resilience.

📈 Technical & Trend Indicators

DMA 50 / DMA 200: ₹1,331 / ₹1,387 — current price is hovering near both, indicating indecision.

RSI: 49.9 — neutral zone, no strong momentum.

MACD: 7.00 — mildly bullish crossover.

Volume: Below average — suggests subdued market interest.

52W Index: Trading at ~28% of its 52-week high — deep correction, potential value zone forming.

💡 Ideal Entry Price Zone

Entry Zone: ₹1,200–₹1,280**

This range offers proximity to technical support and better valuation comfort.

Avoid entering above ₹1,400 unless earnings growth reaccelerates or PEG improves.

🧭 Exit Strategy & Holding Period

If you already hold WHIRLPOOL

Holding Period: 2–4 years — suitable for moderate growth and brand-driven recovery.

Exit Strategy

Fundamental Trigger: Exit if ROE drops below 8% or PEG remains above 4.5 for 2+ quarters.

Technical Trigger: Consider trimming if price nears ₹2,400–₹2,450 without earnings support.

Re-entry Zone: ₹1,100–₹1,200 with signs of improving profitability and volume support.

🧠 Final Verdict

Whirlpool is a moderate-risk long-term candidate with strong brand equity and low debt, but its valuation is stretched and earnings momentum is weak. Best suited for patient investors who believe in long-term consumer appliance growth and are comfortable with short-term volatility.

Let me know if you'd like a peer comparison with other consumer durable or appliance sector stocks.

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