Stock of Whirlpool of India is in focus after it has erased investor wealth worth Rs. 19,464 crores from its peak valuation of Rs. 31,074 after the stock fell over 60 percent from its 52-week high following its management announcement.
Stock Price Movement
With a market capitalization of Rs. 11,610 Crore, the stock is down 62.63 percent from its 52-week high of Rs. 2,449 to current levels of Rs. 915 in just 6 months following the management announcement of stake reduction.
Reason for fall
Whirlpool’s stock has experienced a significant decline due to multiple factors. One of the primary reasons is the reduction in promoter holding. The parent company decreased its stake from 75 percent in Q3 FY24 to 51 percent in Q3 FY25. This decision was driven by concerns over high valuations and a strategic focus on debt reduction.
The initial stake sale created uncertainty among investors, leading to further selling pressure on the stock. Recently, the promoter announced its plan to further reduce its holding from 51 percent to 20 percent between mid-to-late 2025, adding to market concern, and contributing to the stock’s continued decline.
Additionally, the company has been facing intense competition from rivals, like LG, Samsung, and IFB, leading to fluctuating sales and shrinking profit margins. These challenges have further impacted investor confidence, contributing to the stock’s continued decline
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Financial Highlights
The company reported an 11 percent YoY increase in revenue from Rs. 1,536 Crore in Q3FY24 to Rs. 1,705 Crore in Q3FY25. On a QoQ basis, the company reported a marginal decrease of 0.46 percent in revenue from Rs. 1,713 Crore in the previous quarter.
Their Net profit saw an increase of 50 percent YoY from Rs. 30 Crore to Rs. 45 Crore for the same period. On a QoQ basis, the company reported a decrease of 20 percent in Net profit from Rs 54 Crore in the previous quarter.
About the Company
Whirlpool of India is a leading home appliance manufacturer and a subsidiary of Whirlpool Corporation, USA. The company offers a wide range of refrigerators, washing machines, air conditioners, microwaves, and kitchen appliances tailored for Indian consumers. With manufacturing plants in Pune, Faridabad, and Pondicherry, Whirlpool focuses on innovation, energy efficiency, and smart technology.
Written By Abhishek Das
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