Whirlpool of India: Smallcap Stock to Buy Now with 17% Upside Potential
Whirlpool of India Ltd., a leading name in home appliances, has caught the attention of market analysts once again. Trade Brains, a respected stock research portal, has recommended the smallcap stock as a strong “buy” with an estimated upside potential of 17%, making it a hot pick for investors looking to tap into the growth of India’s consumer durables sector.
At its current market price of ₹1,266, the stock is trading well below its 52-week high of ₹2,450. Trade Brains has set a target price of ₹1,490, which translates to a potential gain of 16.68% from current levels. This recommendation comes at a time when Whirlpool is showing strong signs of recovery, both operationally and strategically, despite delivering -19% returns over the past year.
Whirlpool of India: A Trusted Brand with Global Backing
Whirlpool of India Ltd. is a subsidiary of Whirlpool Corporation, a global home appliances giant. The company was formed in 1996 through the merger of Kelvinator India and the TVS joint venture, and has grown to become a leading appliance brand in the country. With state-of-the-art manufacturing units in Faridabad, Puducherry, and Pune, Whirlpool produces a wide range of products including refrigerators, washing machines, microwave ovens, air conditioners, and dishwashers.
What makes Whirlpool stand out is not just its strong brand recognition, but also its commitment to quality, innovation, and global standards. The company’s Pune facility recently received a Silver certification in World Class Manufacturing (WCM) — a mark of excellence in operational efficiency and production standards.
Strategic Growth Moves and Market Tailwinds
Whirlpool is actively investing in product innovation and capacity expansion to cater to rising demand. One of its recent strategic steps includes increasing its stake in the highly profitable Elica brand, which specializes in kitchen appliances like chimneys and cooktops. Additionally, the launch of a new series of high-capacity washing machines demonstrates its focus on tapping into India’s evolving consumer preferences.
This expansion strategy is well-aligned with broader market trends. The Indian Appliances and Consumer Electronics (ACE) market is projected to reach USD 149.1 billion by 2033, and the washing appliances segment alone is expected to grow at a 7.65% CAGR, reaching USD 5.43 billion by 2029. As consumer spending increases, especially in urban and semi-urban areas, Whirlpool is well-positioned to benefit.
Financial Performance: A Strong Q4FY25
Whirlpool’s Q4FY25 results reflect a strong turnaround. Here’s a look at the financial highlights:
- Revenue: ₹2,005 Cr (up 15.62% YoY and 17.59% QoQ)
- Net Profit: ₹119 Cr (up 50.63% YoY and 164.44% QoQ)
This kind of growth, especially the sharp increase in profits, indicates robust cost control and improved operational efficiency.
Key Financial Ratios of Whirlpool of India
| Metric | Value |
|---|---|
| Market Cap | ₹16,061 Cr |
| Current Price | ₹1,266 |
| 52-Week High / Low | ₹2,450 / ₹899 |
| Stock P/E | 45.4 |
| Book Value | ₹311 |
| Dividend Yield | 0.39% |
| ROCE (Return on Capital Employed) | 13.0% |
| ROE (Return on Equity) | 9.27% |
| Face Value | ₹10.0 |
Analyst Outlook
Analysts at Trade Brains believe that Whirlpool’s strategic initiatives, capacity expansion, and product innovation are in line with the broader demand outlook of the consumer appliances market in India. The valuation may seem a bit stretched with a P/E of 45.4, but the earnings growth potential and brand strength justify the premium.
With demand expected to rise steadily and the company taking proactive steps to capture market share, Whirlpool of India is positioned as a compelling smallcap pick for long-term investors.
Q&A: Whirlpool of India Stock Recommendation – At a Glance
Q1: Why is Whirlpool of India being recommended as a “Buy” now?
A: Trade Brains sees a potential upside of 16.68% based on product innovation, increased market share, and recovery in earnings. The current price offers an attractive entry point for long-term gains.
Q2: What is the target price suggested by Trade Brains?
A: ₹1,490, which is nearly 17% higher than the current trading level of ₹1,266.
Q3: How has Whirlpool performed financially in Q4FY25?
A: The company reported a 15.62% YoY increase in revenue and a 50.63% YoY jump in net profit, reflecting strong operational performance.
Q4: What are some strategic moves made by Whirlpool recently?
A: Investments in refrigeration capacity, launch of high-capacity washing machines, and increased stake in the Elica brand are key moves.
Q5: Is the consumer durables sector growing in India?
A: Yes. The ACE market is expected to reach USD 149.1 billion by 2033, and washing machines alone will grow at 7.65% CAGR till 2029.
Q6: What makes Whirlpool a good long-term bet?
A: Strong brand equity, expanding product portfolio, and alignment with growing demand in Indian households make it a solid long-term investment.
Conclusion:
Whirlpool of India’s robust fundamentals, aggressive expansion strategies, and promising sector outlook make it an attractive smallcap stock to consider now. With a projected upside of 17%, it might just be the right time for investors to give this stock a closer look.
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