WHIRLPOOL - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.1
| Stock Code | WHIRLPOOL | Market Cap | 12,615 Cr. | Current Price | 995 ₹ | High / Low | 1,474 ₹ |
| Stock P/E | 41.2 | Book Value | 283 ₹ | Dividend Yield | 0.50 % | ROCE | 12.7 % |
| ROE | 9.17 % | Face Value | 10.0 ₹ | DMA 50 | 894 ₹ | 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 | 71.9 | MACD | 40.2 | Volume | 2,83,863 | Avg Vol 1Wk | 4,69,820 |
| Low price | 756 ₹ | High price | 1,474 ₹ | PEG Ratio | 3.71 | Debt to equity | 0.07 |
| 52w Index | 33.3 % | Qtr Profit Var | 65.8 % | EPS | 22.6 ₹ | Industry PE | 48.7 |
📊 WHIRLPOOL has moderate fundamentals but faces valuation challenges. The P/E ratio (41.2) is slightly below the industry average (48.7), yet ROCE (12.7%) and ROE (9.17%) are modest. The PEG ratio (3.71) suggests overvaluation relative to growth. Dividend yield (0.50%) provides limited passive income. Recent profit growth (PAT ₹44.4 Cr. vs. ₹20.9 Cr.) is encouraging, but overall performance remains volatile.
💡 Ideal Entry Price Zone: ₹850 – ₹950 (closer to DMA 50 support at ₹894). Entering near this zone reduces valuation risk and aligns with technical support.
📈 Exit / Holding Strategy: If already holding, consider partial profit booking near ₹1,050–₹1,100 (resistance zone). For long-term investors, holding for 2–3 years is viable only if profitability stabilizes and ROE improves. Monitor quarterly earnings and institutional activity closely.
✅ Positive
- Book value of ₹283 provides valuation support.
- Dividend yield of 0.50% offers modest passive returns.
- Quarterly PAT improved significantly (₹44.4 Cr. vs. ₹20.9 Cr.).
- Low debt-to-equity ratio (0.07) ensures financial stability.
⚠️ Limitation
- ROCE (12.7%) and ROE (9.17%) are below ideal levels.
- PEG ratio (3.71) indicates overvaluation relative to growth.
- RSI at 71.9 suggests overbought conditions.
📉 Company Negative News
- FII holdings declined (-0.43%), showing reduced foreign investor confidence.
- 52-week index at 33.3% indicates underperformance compared to peers.
📈 Company Positive News
- DII holdings increased (+0.30%), reflecting domestic institutional support.
- Quarterly profit variation (+65.8%) highlights earnings recovery momentum.
🏭 Industry
- Industry P/E at 48.7 is higher, making WHIRLPOOL relatively cheaper but with weaker fundamentals.
- Sector growth remains steady, but peers show stronger ROE and ROCE metrics.
🔎 Conclusion
WHIRLPOOL is financially stable but currently overvalued relative to its growth metrics. Long-term investors should wait for correction toward ₹850–₹950 before fresh entry. Existing holders may book partial profits near resistance and hold the rest for 2–3 years, provided profitability improves and ROE strengthens.