Whirlpool Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Whirlpool of India is currently facing significant challenges, including margin compression and competitive pressures, as highlighted by management's cautious outlook. The inability to fully pass on inflationary costs has negatively impacted EBITDA margins, with analysts projecting continued margin stress through FY27. Despite these headwinds, management remains optimistic about growth in the air conditioning segment and market share gains in washing machines, supported by strategic investments in premium products. Vista's financial outlook reflects stable revenue growth consistent with historical performance, although margins are expected to remain under pressure. The company's conservatively financed balance sheet, with low leverage, provides some stability amid these challenges. However, the competitive landscape and regulatory pressures pose risks to profitability. Over the next 12-24 months, key opportunities include the successful launch of new premium products and potential easing of input costs, while watchpoints include persistent competitive pricing and supply chain disruptions. Overall, the outlook remains cautious, with a strong sell recommendation reflecting the expected downside in valuation amid these challenges
Why We Like This Stock
- Management's focus on premium product launches may enhance market positioning and profitability
- Stable revenue growth aligns with historical performance, indicating resilience in core segments
- A conservatively financed balance sheet supports financial stability amid operational challenges
Things To Watch Out For
- Persistent margin compression due to inability to pass on inflationary costs is a significant concern
- Intense competitive pressures in the refrigerator segment may hinder profitability and market share
- Potential supply chain disruptions from geopolitical events pose risks to operational efficiency
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,830 | 7,919 | 8,034 | 8,382 | 8,964 |
| Profit Before Tax (Cr.) | 326 | 482 | 426 | 305 | 385 |
| PBT Margin | 4.8% | 6.1% | 530.2% | 3.6% | 4.3% |
| Net Profit (Cr.) | 222 | 339 | 308 | 219 | 275 |
| Earnings Per Share | 16.9 | 26.4 | 24.1 | 17.1 | 21.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▼ Reduce | 730 | 06-Aug-2026 |
Company Overview
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Whirlpool of India Limited manufactures and markets home appliances in India and internationally. It offers refrigerators, washing machines, air conditioners, microwave ovens, kitchen, built-in, and small appliances as well as dishwasher. The company sells its products through Internet. The company was incorporated in 1960 and is headquartered in Gurugram, India. Whirlpool of India Limited operates as a subsidiary of Whirlpool Corporation.