Key Points:
- Whirlpool of India Shares fell over 11% after a 1.5 crore block deal triggered heavy selling.
- Promoter stake reductions continue, raising uncertainty about future stock performance.
- Weak quarterly earnings, including a 20.6% net profit drop, pressured market sentiment.
Whirlpool of India shares fell more than 11 percent on Nov. 27 after a block deal involving 1.5 crore shares drove heavy selling in early trade. The transaction represented 11.8 percent of the company’s equity and pushed the stock to about Rs 1,076.8 on the Mumbai market. The fall adds to a month-long decline of 22.6 percent and a year-to-date drop of more than 40 percent.
Promoter Stake Plans Raise Concern
The block deal occurred as the promoter, Whirlpool Mauritius, continued to reduce its holding. The promoter held 51 percent at the end of the September quarter after selling 24 percent in a Rs 5,000-crore block deal in Feb. 2024. The parent company previously said it plans to lower its stake from 51 percent to about 20 percent as part of a long-term strategy, raising questions about future performance of Whirlpool of India Shares.
The company, in a recent update, said it expects the reduction to conclude by the first half of 2026. Investors have expressed concern that ongoing stake sales may signal a shift in promoter commitment, affecting sentiment for Whirlpool of India Shares. A market analyst said the persistent selling has increased uncertainty for shareholders.
Earnings Weakness Pressures Sentiment
Whirlpool of India reported weaker financial results for the September quarter. Net profit fell 20.6 percent to Rs 41 crore, compared with Rs 52 crore a year earlier. Revenue declined 3.8 percent to Rs 1,647 crore. The company posted a sharper drop in operational performance as EBITDA fell 33.8 percent to Rs 57.6 crore from Rs 87 crore last year. The EBITDA margin narrowed to 3.5 percent, down from 5 percent.
A company spokesperson said the business faced higher input costs and softer demand in key categories. “We are taking steps to improve efficiency and strengthen our product portfolio,” the spokesperson said, aiming to stabilize Whirlpool of India Shares in the market.
Market Reaction Remains Cautious
Analysts noted that the combination of a large block deal, steady promoter selling, and weak quarterly numbers heightened market sensitivity. Trading remained volatile through the session as investors reassessed the company’s near-term outlook. Some analysts said the stock may continue to face pressure until clarity emerges on the promoter’s final stake and the company’s recovery measures.
The company has stated that it aims to stabilize operations through cost controls and supply chain adjustments. It has also indicated that new product initiatives may support growth in the upcoming quarters.
The market will monitor further disclosures on the promoter’s stake sale timeline and updates on demand conditions in the consumer appliances sector as the financial year progresses, keeping a close eye on Whirlpool of India Shares performance.
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