Whirlpool of India Ltd Falls to 52-Week Low Amid Continued Downtrend

Recent Price Movement and Market Context

Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — Whirlpool of India’s share price has demonstrated persistent weakness. Despite outperforming its sector by 0.9% on the day of the new low, the broader market environment remains challenging. The Sensex opened 385.82 points lower and is currently down 0.5% at 81,768.08, continuing a three-week losing streak with a cumulative decline of 4.66%. Notably, the NIFTY MEDIA index also hit a new 52-week low today, underscoring sector-wide headwinds.

Long-Term Performance and Valuation Metrics

Over the past year, Whirlpool of India has delivered a total return of -50.93%, significantly underperforming the Sensex, which gained 7.82% during the same period. The stock’s 52-week high was Rs.1,683.25, highlighting the extent of the recent decline. The company’s market capitalisation grade stands at 3, reflecting its mid-cap status, while the Mojo Score has deteriorated to 28.0, with the Mojo Grade downgraded from Sell to Strong Sell as of 8 December 2025.

Financial Performance Highlights

The company’s quarterly financials reveal further pressures. Profit Before Tax excluding other income (PBT LESS OI) declined sharply by 109.32% to a loss of Rs.2.24 crore. Net sales for the quarter stood at Rs.1,647.27 crore, the lowest recorded in recent periods. Profit After Tax (PAT) also fell by 34.4% to Rs.34.13 crore. These figures contribute to the subdued long-term growth outlook, with operating profit having contracted at an annualised rate of -0.49% over the past five years.

Promoter Stake and Confidence Indicators

Adding to the concerns, promoters have reduced their stake by 11.24% over the previous quarter, now holding 39.76% of the company’s equity. This reduction may be interpreted as a signal of diminished confidence in the company’s near-term prospects.

Comparative Performance and Sector Positioning

Whirlpool of India’s underperformance extends beyond the immediate year. The stock has lagged the BSE500 index over the last three years, one year, and three months, indicating persistent challenges relative to broader market peers. Despite this, the company maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure.

Valuation and Profitability Metrics

The company’s return on equity (ROE) stands at 8.3%, which, while modest, supports an attractive valuation with a price-to-book value ratio of 2.4. This valuation places the stock at a discount relative to the historical averages of its peer group. Interestingly, despite the stock’s negative price performance over the past year, Whirlpool of India’s profits have increased by 7.4%, resulting in a price/earnings to growth (PEG) ratio of 4, which suggests a disconnect between earnings growth and market valuation.

Summary of Key Concerns

The stock’s fall to Rs.771 represents a culmination of several factors: a sustained decline in share price over 11 consecutive sessions, underwhelming financial results with declining profitability, reduced promoter holdings, and a long-term trend of negative growth in operating profit. The broader market context, with the Sensex also experiencing a downward trend and sector indices hitting lows, compounds the challenges faced by Whirlpool of India.

Market Position and Outlook

While the company’s conservative debt position and reasonable ROE provide some stability, the current valuation reflects market caution. The disconnect between profit growth and share price performance highlights the complexities investors face in assessing the stock’s trajectory within a volatile sector environment.

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