Whirlpool of India Ltd is Rated Sell by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO currently assigns Whirlpool of India Ltd a 'Sell' rating, reflecting a cautious stance on the stock. This rating suggests that investors should consider reducing exposure or avoiding new purchases at this time, given the company's present fundamentals and market conditions. The rating was revised on 06 February 2026, moving from a 'Strong Sell' to a 'Sell', indicating a slight improvement but still signalling challenges ahead.

Quality Assessment

As of 07 February 2026, Whirlpool of India Ltd holds an average quality grade. This reflects a middling operational performance, with the company showing limited growth in core profitability. Over the past five years, operating profit has declined at an annualised rate of -0.49%, indicating stagnation or mild deterioration in business efficiency. Additionally, the latest quarterly results for December 2025 revealed a subdued earnings per share (EPS) of Rs 2.09, the lowest recorded recently, and a significant portion of profit before tax (58.88%) derived from non-operating income. This reliance on non-core income sources raises concerns about the sustainability of earnings quality.

Valuation Perspective

From a valuation standpoint, the stock appears attractive as of 07 February 2026. The MarketsMOJO valuation grade reflects that Whirlpool of India Ltd is trading at levels that may offer value relative to its earnings and asset base. However, this attractiveness must be weighed against the company’s operational challenges and market sentiment. Investors should consider whether the current price adequately compensates for the risks associated with the company’s financial trends and technical outlook.

Financial Trend Analysis

The financial trend for Whirlpool of India Ltd is currently flat, signalling little to no growth momentum in recent periods. The company’s financial metrics as of 07 February 2026 show a lack of positive trajectory in profitability and cash flow generation. Moreover, promoter confidence appears to be waning, with promoters reducing their stake by 11.24% in the previous quarter, now holding 39.76% of the company. This reduction in promoter holding may indicate diminished faith in the company’s near-term prospects, which can weigh heavily on investor sentiment.

Technical Outlook

Technically, the stock is rated bearish as of 07 February 2026. Price action over the medium term has been weak, with the stock delivering negative returns across multiple time frames. Specifically, the stock has declined by 22.26% over the past year and underperformed the BSE500 benchmark consistently for the last three years. Shorter-term returns also reflect volatility and weakness, with a 3-month decline of 36.57% and a 6-month drop of 35.41%. Despite a modest rebound of 2.99% on the latest trading day and a 10.23% gain over the past week, the overall technical picture remains unfavourable.

Stock Performance and Market Context

As of 07 February 2026, Whirlpool of India Ltd is classified as a small-cap stock within the Electronics & Appliances sector. Its recent performance has been disappointing relative to broader market indices. The year-to-date return stands at -4.69%, while the one-month return is negative at -2.46%. These figures highlight ongoing challenges in regaining investor confidence and market momentum. The company’s consistent underperformance against the benchmark index over the last three years underscores structural issues that investors should carefully consider.

Investor Considerations

For investors, the 'Sell' rating on Whirlpool of India Ltd signals caution. The combination of average quality, attractive valuation, flat financial trends, and bearish technicals suggests that the stock may face continued headwinds. The reduction in promoter stake further compounds concerns about the company’s future growth prospects. While the valuation may appear tempting, the underlying fundamentals and market dynamics advise prudence.

Summary of Key Metrics as of 07 February 2026

The MarketsMOJO Mojo Score for Whirlpool of India Ltd currently stands at 37.0, corresponding to a 'Sell' grade. This represents a 9-point improvement from the previous score of 28, which was associated with a 'Strong Sell' rating. Despite this improvement, the score remains low, reflecting ongoing concerns.

Returns over various periods illustrate the stock’s volatility and weakness: a 1-day gain of 2.99%, 1-week gain of 10.23%, but declines over 1-month (-2.46%), 3-month (-36.57%), 6-month (-35.41%), year-to-date (-4.69%), and 1-year (-22.26%). These figures highlight the stock’s struggle to maintain consistent upward momentum.

Operationally, the company’s poor long-term growth is evident from the negative annualised operating profit growth rate of -0.49% over five years. The December 2025 quarter results were particularly weak, with EPS at Rs 2.09 and a heavy reliance on non-operating income, which accounted for 58.88% of profit before tax. This raises questions about the sustainability of earnings quality.

Promoter stake reduction by 11.24% in the previous quarter to 39.76% signals a potential lack of confidence from insiders, which is a critical factor for investors to monitor closely.

Conclusion: What the 'Sell' Rating Means for Investors

The 'Sell' rating on Whirlpool of India Ltd by MarketsMOJO advises investors to approach the stock with caution. While the valuation may offer some appeal, the combination of average quality, flat financial trends, bearish technicals, and diminishing promoter confidence suggests that the stock faces significant challenges. Investors should carefully weigh these factors against their risk tolerance and portfolio objectives before considering exposure to this stock.

In summary, the current 'Sell' rating reflects a comprehensive assessment of Whirlpool of India Ltd’s fundamentals and market position as of 07 February 2026, providing a clear signal for investors to reassess their holdings in this company.

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