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On Monday, Whirlpool of India (NSE:WHIR) shares received an updated stock rating from Jefferies, moving from ’Underperform’ to ’Hold’, although the firm reduced its price target to INR1,285 from INR1,575. The adjustment comes in the wake of the company’s parent, Whirlpool Corporation (NYSE:WHR), announcing plans to sell its approximately 20% stake in the Indian subsidiary during the second half of the calendar year 2025. The parent company currently holds a 51% ownership.
Analysts at Jefferies acknowledged Whirlpool of India’s strong brand presence in the durable goods market, particularly in refrigerators and washers, while noting that air conditioners represent a smaller portion of the company’s sales mix. The revised outlook by Jefferies includes a 5-8% increase in the estimated earnings per share (EPS) for fiscal years 2026-2027 and forecasts a compound annual growth rate (CAGR) of 22% for the company’s profit after tax (PAT) from fiscal years 2025 to 2027.
The anticipated sale by Whirlpool Corporation is expected to provide Whirlpool of India with greater autonomy. However, the potential supply overhang from this divestiture led Jefferies to lower the target price-to-earnings (PE) ratio for Whirlpool of India to 32 times, which reflects roughly a 20% discount to the historical average PE ratio.
Despite the reduction in the price target, the upgrade to a ’Hold’ rating comes after a significant drop in Whirlpool of India’s share price, which has seen a decline of approximately 35% in the last month. The new price target and rating reflect Jefferies’ revised expectations and account for both the potential consumption boost from the recent budget and the anticipated changes in corporate structure.
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