Whirlpool of India Ltd Falls to 52-Week Low Amidst Continued Underperformance

Stock Performance and Market Context

The stock of Whirlpool of India Ltd, a key player in the Electronics & Appliances sector, recorded an intraday low of Rs.756.05, representing a 2.28% drop on the day. This decline contributed to a two-day consecutive fall, with the stock losing 1.29% over this period. The day’s performance also saw the stock underperform its sector by 0.54%, reflecting broader sectoral pressures.

Currently, Whirlpool India is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex recovered sharply after a negative opening, gaining 454.06 points to trade at 81,009.74, up 0.36%. Despite the Sensex’s resilience, led by mega-cap stocks, Whirlpool’s shares continue to face downward pressure.

Long-Term Performance and Valuation Metrics

Over the past year, Whirlpool of India Ltd’s stock has declined by 34.89%, significantly underperforming the Sensex, which posted a 4.52% gain in the same period. The stock’s 52-week high was Rs.1,471, highlighting the extent of the recent correction. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the past three annual periods.

Financially, the company’s operating profit has contracted at an annual rate of -0.49% over the last five years, indicating subdued growth trends. Quarterly results reveal a sharp decline in profitability, with Profit Before Tax (PBT) excluding other income falling 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, while Profit After Tax (PAT) dropped by 34.4% to Rs.34.13 crore.

Promoter Stake and Market Sentiment

One notable development is the reduction in promoter shareholding, which has decreased by 11.24% over the previous quarter to 39.76%. This decline in promoter confidence may be interpreted as a cautious stance on the company’s near-term prospects. Such a significant reduction in promoter stake often reflects strategic portfolio adjustments or reassessment of growth outlooks.

Financial Strength and Valuation Considerations

Despite the challenges, Whirlpool of India Ltd maintains a low average debt-to-equity ratio of zero, indicating a debt-free balance sheet that could provide financial flexibility. The company’s return on equity (ROE) stands at 8.3%, which, while modest, supports an attractive valuation framework.

The stock is currently trading at a price-to-book value of 2.4, which is below the average historical valuations of its peers in the Electronics & Appliances sector. This discount suggests that the market is pricing in the company’s recent performance issues and growth concerns. Over the past year, while the stock’s price has declined by 34.78%, the company’s profits have increased by 7.4%, resulting in a price/earnings to growth (PEG) ratio of 3.9, indicating a relatively high valuation relative to earnings growth.

Mojo Score and Ratings

According to MarketsMOJO’s latest assessment dated 8 Dec 2025, Whirlpool of India Ltd holds a Mojo Score of 28.0, categorised as a Strong Sell. This represents a downgrade from the previous Sell rating, reflecting deteriorating fundamentals and market sentiment. The company’s market cap grade is 3, indicating a mid-tier capitalisation within its sector.

Summary of Key Metrics

To summarise, Whirlpool of India Ltd’s stock has reached a new 52-week low of Rs.756.05 amid a backdrop of declining profitability, reduced promoter confidence, and persistent underperformance relative to market benchmarks. The stock’s valuation metrics suggest it is trading at a discount to peers, supported by a debt-free balance sheet and moderate ROE. However, the negative earnings trends and recent rating downgrade underscore the challenges faced by the company in maintaining growth momentum.

Market Environment

While the broader market, led by mega-cap stocks, has shown resilience with the Sensex gaining 0.36% today, Whirlpool’s shares have not participated in this recovery. The divergence highlights sector-specific and company-specific factors weighing on the stock’s performance.

Conclusion

Whirlpool of India Ltd’s fall to its 52-week low is a reflection of multiple factors including subdued earnings growth, declining promoter stake, and consistent underperformance against benchmarks. The stock’s current valuation and financial metrics provide a comprehensive picture of its present standing within the Electronics & Appliances sector.

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