When a company like Whirlpool posts a 48.8% jump in profits, the markets take notice. But when the same company is also navigating a strategic shift, including a planned reduction in promoter stake, it sparks deeper questions for investors. Can Whirlpool continue to grow, or was this profit jump just a festive season high? In this post, we’ll dig into the numbers, strategies, and potential of the company to give you a data-backed perspective on whether it still deserves a spot in your watchlist.
The Origins of Whirlpool in India
Whirlpool Corporation, headquartered in Michigan, USA, is a Fortune 500 company with over 100 years of legacy in manufacturing home appliances. It entered the Indian market in the 1980s through a joint venture with the TVS group and formally established Whirlpool of India Limited in 1995 after acquiring Kelvinator India Ltd and later, the major stake in TVS Whirlpool. Over the years, the brand has become a household name across India, known for its washing machines, refrigerators, and kitchen appliances.
Whirlpool of India now operates through its manufacturing facilities in Faridabad, Pondicherry, and Pune, producing a wide range of appliances that are distributed across the country through a robust retail network.
Business Segments and Product Lines
The company’s business in India spans across several major product categories:
- Refrigerators: One of the largest segments, including direct cool, frost-free, and side-by-side models.
- Washing Machines: Ranging from semi-automatic and top-load to fully automatic front-load machines.
- Air Conditioners: Including inverter and split ACs.
- Microwaves and Ovens: With a growing footprint in urban markets.
- Dishwashers and Kitchen Appliances: An emerging segment, especially post-COVID.
It has also been innovating with IoT-enabled smart home appliances and energy-efficient models, responding to evolving consumer preferences in urban India.
What Sparked the Recent Rally?
In Q3 FY25, the company posted a revenue of Rs 1,704.85 crore, a year-on-year increase of 11% from Rs 1,535.65 crore. But the real headline was the net profit of Rs 44.5 crore, which jumped by 48.8% compared to the same quarter last year. This improvement in profitability came from calibrated price actions and better product mix targeting higher-margin appliances.
| Metric | Q3 FY25 | Q3 FY24 | YoY Growth |
|---|---|---|---|
| Revenue from Ops | Rs 1,704.85 Cr | Rs 1,535.65 Cr | +11% |
| Net Profit | Rs 44.5 Cr | Rs 29.93 Cr | +48.8% |
| Net Profit Margin | 2.6% | 1.9% | +70 bps |
These numbers, while modest in absolute value, mark a turning point, especially after muted performance in the previous fiscal year.
Valuation Metrics
On the valuation front, the stock is trading at a Price-to-Earnings (P/E) ratio of 43.02x and a Price-to-Book (P/B) ratio of 3.67x.
| Valuation Metric | Value |
|---|---|
| P/E Ratio | 43.02x |
| P/B Ratio | 3.67x |
| Market Cap | Rs 13,884 Cr |
Peer Comparison
| Company | P/E Ratio | Market Cap (Rs Cr) |
|---|---|---|
| Whirlpool of India | 43.02x | 13,884 |
| Crompton Greaves Consumer Electricals | 41.51x | 21,825.1 |
| TTK Prestige | 43.04x | 8,943.5 |
| Symphony Ltd | 34.8x | 8,011 |
Return Ratios
| Return Metric | Value |
|---|---|
| ROE | 6.36% |
| ROCE | 9.07% |
Historical Performance
| Fiscal Year | Revenue (Rs Cr) | Net Profit (Rs Cr) |
|---|---|---|
| FY22 | 6,197 | 567 |
| FY23 | 6,668 | 224 |
| FY24 | 6,830 | 224 |
Strategic Developments
One of the most notable changes has been the announcement by parent Whirlpool Corporation to reduce its stake in the Indian subsidiary from 51% to 20% by late 2025.
This triggered a 20% drop in the Indian unit’s share price. The move is aimed at giving the subsidiary more autonomy while also unlocking value for shareholders.
Future Outlook
Key strategic initiatives include:
- Investing in smart appliance tech
- Expanding presence in Tier II/III cities
- New launches in AC and refrigerator categories
- Partnering with online platforms for exclusive festive tie-ups
Risks to Watch
- Uncertainty around parent’s reduced involvement
- Operating margins still moderate
- Increased competitive intensity from global and Indian brands
The company’s recent performance offers cautious optimism. While the 48.8% profit jump is impressive, it comes off a low base. With valuations stretched, execution becomes key.
Disclaimer: This blog is meant purely for informational purposes. It should not be construed as investment advice. Investors are advised to do their own due diligence or consult a financial advisor before making any investment decisions.
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