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500238: Future Ownership Changes Will Shape Earnings Profile And Near Term Outlook

Update shared on 12 Dec 2025

Fair value Decreased 18%
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AnalystLowTarget's Fair Value
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1Y
-50.7%
7D
2.7%

Analysts have lowered their price target for Whirlpool of India from ₹1,100 to ₹897, reflecting slightly higher discount rates, modestly softer margin expectations, and a reset to a more conservative future earnings multiple despite marginally stronger revenue growth assumptions.

What's in the News

  • Advent International is in advanced exclusive negotiations with Whirlpool Corporation to acquire a 31% controlling stake in Whirlpool of India via Whirlpool Mauritius, which would trigger an open offer for an additional 26% under takeover regulations (Key Developments).
  • Whirlpool Corporation aims to retain around a 20% stake in Whirlpool of India after the proposed transaction, with both parties targeting deal closure by the end of the current calendar year (Key Developments).
  • Whirlpool of India has signed a long term services agreement with Whirlpool Asia LLP, under which its Pune based Global Technology and Engineering Centre will provide engineering and technical services at cost plus an 18% markup. This will be effective once the parent reduces indirect ownership below 50% and will run until March 31, 2029 (Key Developments).
  • The services agreement guarantees minimum annual service charges tied to a reference amount of INR 1,860 million for financial years 2027 to 2029, and allows Whirlpool Asia LLP to hire related resources and acquire related assets upon expiry or termination (Key Developments).
  • The company has scheduled a board meeting on November 4, 2025 to consider and approve unaudited standalone and consolidated results for the quarter and half year ended September 30, 2025, and a special shareholders meeting via postal ballot on November 28, 2025 (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target has fallen significantly from ₹1,100 to ₹897, implying a more conservative fair value assessment.
  • Discount Rate has risen slightly from 14.93% to 15.13%, reflecting a modestly higher perceived risk or required return.
  • Revenue Growth assumptions have increased marginally from 10.11% to 10.75%, indicating slightly stronger top line expectations.
  • Net Profit Margin expectations have eased slightly from 5.70% to 5.48%, pointing to modestly softer profitability forecasts.
  • Future P/E multiple has fallen sharply from 35.2x to 11.8x, signaling a substantial reset in valuation expectations for future earnings.

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