Target: ₹1,100
CMP: ₹1,232
In its FY25 annual report, the company revealed that approximately 40% of its profit before tax (PBT) derived from other income. The price-to-earnings (P/E) valuation multiple, based on core business earnings—excluding cash and tax-adjusted other income—stands at 71x on FY25 earnings. Despite operating in a fiercely competitive environment, the company increased its market share in both washing machines and refrigerators during FY25.
The organization launched several new products across various categories and expanded existing product lines. Additionally, it implemented cost reduction initiatives and adopted a modified pricing strategy to address competition and comply with regulatory changes. Research and Development spending rose significantly from ₹35.8 crore in FY24 to ₹79.1 crore in FY25. Advertising expenditure, as a percentage of sales, also increased from 0.8% in FY24 to 1.1% in FY25, enhancing brand visibility. The company further expanded its distribution network, investing in a “feet on street” model to reach smaller towns.
Forecasts estimate that Whirlpool India will report cumulative annual growth rates (CAGRs) for revenue and profit after tax (PAT) at 12% and 16.6%, respectively, from FY25 to FY27E. Maintaining a SELL rating, the company has set a discounted cash flow (DCF)-based target price of ₹1,100, which implies a target P/E of 29x FY27E earnings per share.
Key risks include: a steep rise in commodity prices, increased competitive pressures, and potential delays or failures in new product launches.
Published on September 26, 2025.
