WHIRLPOOL - Investment Analysis

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

Investment Rating: 3.0

🧊 Fundamental Analysis of Whirlpool of India Ltd (WHIRLPOOL)

(Leading home appliance brand in India — refrigerators, washing machines, etc.)

✅ Positives

Strong Brand & Market Presence

Trusted legacy brand with wide distribution and product portfolio

Beneficiary of rising middle-class consumption and housing growth

Financial Stability

Debt-to-Equity: 0.02 — virtually debt-free, strong balance sheet

EPS: ₹28.4, with consistent quarterly profits

PAT Qtr: ₹146 Cr vs Prev Qtr: ₹114 Cr — improving earnings

Technical Setup

MACD: +16.8 — bullish momentum

RSI: 51.7 — neutral zone, room for upside

Volume stable — consistent investor interest

⚠️ Concerns

Valuation Stretch

P/E: 49.7 vs Industry PE: 53.3 — slightly undervalued, but still expensive

PEG Ratio: 6.84 — high, suggests growth is not keeping pace with valuation

Book Value: ₹311 vs Price: ₹1,390 — ~4.5x book, premium pricing

Moderate Profitability

ROCE: 13.0%, ROE: 9.27% — below ideal for long-term compounding

Dividend Yield: 0.36% — low, not attractive for income investors

Qtr Profit Var: +1.33% — minimal growth

Weak Sentiment

FII Hold ↓ 0.43% — foreign investors trimming

52W Index: 31.6% — significant drawdown from highs

📉 Ideal Entry Price Zone

Entry Zone: ₹1,250–₹1,300

Near support and below DMA 50

Improves margin of safety given valuation concerns

🧭 Long-Term Investment Outlook

Whirlpool is a stable but slow-growth candidate. While its brand and balance sheet are strong, valuation is rich and growth metrics are modest. It may suit conservative investors seeking stability, but not ideal for aggressive long-term compounding.

Holding Period: 2–3 years

Reassess if ROE improves to >12% and PEG drops below 3.0

Watch for product innovation, rural penetration, and margin expansion

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹1,500–₹1,600

If price rebounds on momentum, consider trimming

Full Exit

If ROE remains <10% and PEG stays >5.0

If price breaks below ₹1,250 and fails to recover

If quarterly profit growth stagnates or declines

Reinvest: Only if ROCE improves to >15% and valuation becomes more reasonable

Would you like a comparison with peers like Voltas, Blue Star, or Havells to assess sector competitiveness and alternative opportunities?

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