Whirlpool India (WHIRLPOOL)

FairStock Score: 56/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong balance sheet: Debt/Equity of only 0.07 and Altman Z-Score of 3.05 indicate low financial distress risk
• Piotroski F-Score of 8/9 reflects solid financial health despite the earnings downturn
• Healthy free cash flow of ₹632 Cr provides cushion for capex, dividends and capital allocation flexibility
• Established Whirlpool brand in Indian household appliances supports longer-term competitive positioning

Concerns

• Sales and profit are declining: top-line down 4.66% and profit down 23.37%; latest quarter net margin is only around 1.5%
• Expensive valuation: P/E of 33.48, P/B of 3.04, and price of ₹947.15 is far above Graham Number of ₹428.56, implying negative margin of safety of -115%
• Low dividend yield of 0.54% offers little income support while waiting for a recovery
• ROE of 8.42% is mediocre for a stock being valued as a quality compounder

AI Analysis

When I look at Whirlpool India, I see a recognizable consumer franchise in a brutally competitive appliances market. The balance sheet is the strongest part: debt/equity is just 0.07, Altman Z-Score 3.05 sits safely above the distress zone, and free cash flow came in at ₹632 Cr. A Piotroski score of 8 out of 9 tells me the company is financially disciplined. That gives a floor, but not a reason to buy. The business itself is sputtering. Sales fell 4.66%, profit dropped 23.37%, and last quarter net profit of ₹27 Cr on ₹1,774 Cr sales is a razor-thin 1.5% margin. ROE of 8.42% and ROCE of 12.63% are respectable, but far from the kind of franchise economics I demand. Appliances are cyclical; a bad consumer environment will compress earnings, and this shows. Now valuation: the stock trades at ₹947.15, 33.48 times earnings and 3.04 times book value. Graham's number is only ₹428.56, meaning the market is paying more than double my conservative assessment. In Graham's language, there is negative margin of safety — minus 115%. I cannot wrap my head around a 33 P/E with negative growth and falling profits. The DCF number of ₹2,408 might excite someone, but I prefer hard current earnings over optimistic projections. I would rather wait. If Whirlpool proves demand is recovering and margins recover toward historical norms, it can be a fine cyclical compounder. At this price, the market already expects a perfect turnaround. I only want to own wonderful businesses at fair prices; Whirlpool may be decent, but today's price is not fair. Patience remains the investor's greatest ally.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer