In Thursday’s trading session, the shares of this mid-cap stock surged by 19.2 percent on BSE to hit a new 52-week high at Rs. 2,190.05, after a few reports claimed that Robert Bosch is considering a bid to acquire a US home appliances manufacturer.
With a market cap of Rs. 25,439.7 crore, at 01:17 p.m., the shares of Whirlpool Of India Limited were trading in the green at Rs. 2,003, up by 9.04 percent, compared to its previous closing price of Rs. 1,836.9.
What’s the news:
The German engineering giant Robert Bosch is considering making a bid for Whirlpool Corporation, US appliances manufacturer, in a strategic move aimed at strengthening its foothold in the household appliances sector, as reported by Reuters.
Bosch has been in discussions with potential advisers to explore the possibility of acquiring Whirlpool, which currently boasts a market cap of approximately $4.8 billion.
Stefan Hartung, CEO of Bosch, told to German business daily Handelsblatt in the month of May that the company is exploring several substantial acquisition opportunities and remains open to entering new business domains or pursuing global deals.
Acquiring one of the largest global manufacturers of household appliances would substantially strengthen Bosch’s presence in this sector, particularly amidst increasing competition from Asian competitors.
Whirlpool has undergone extensive restructuring in recent years, including the merging of its European operations into a new entity under the ownership of Turkish competitor Arcelik, as well as divesting its Middle Eastern and African businesses.
The prospect of acquiring Whirlpool aligns with Bosch’s strategy to expand its unit specialising in large home appliances, while it remains the world’s largest automotive supplier.
Over the past two years, the Michigan-based company has seen its market value decline by nearly 50 percent and has recently announced plans to reduce about 1,000 jobs as part of a strategy aimed at improving profit margins.
Financial & Stock Performance:
In terms of financials, the revenue from operations stood at Rs. 1,734 crore in Q4 FY23-24, rising by 3.6 percent YoY from Rs. 1,672.65 crore in Q4 FY22-23, and the after-tax profit grew by 24.7 percent YoY to Rs. 79.45 crore from Rs. 63.7 crore, during the same period.
The stock has delivered positive returns of nearly 37 percent in one year and around 48 percent in the last six months. So far in 2024, it has given about 46.7 percent of positive returns.
As per the shareholding pattern of March 2024, the Promoters hold a 51 percent stake in the company, Foreign Institutional Investors (FII) hold a 6.47 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold an 8.83 percent and 33.7 percent stake in Whirlpool Of India, respectively.
About the company:
Whirlpool of India Limited is a leading manufacturer of home appliances and is primarily engaged in the business of manufacturing and trading of refrigerators, washing machines, air conditioners, microwave ovens, built-in and small appliances, and serves both domestic and international markets.
It also provides services in the area of product development and procurement services to Whirlpool Corporation, USA and other Group Companies.
Written by Shivani Singh
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