Whirlpool shares hit 22-month high, up 45% in less than 3 months; is there more upside ahead?
Whirlpool of India shares surged 3.3%, hitting a 22-month high of ₹1,760 apiece. This rally has resulted in a 15.50% gain for the stock in the current month and a 45.33% increase from the March 2024 low of ₹1,211 apiece.Despite the strong rally, the stock may continue its ascent, based on projections from the domestic brokerage firm Equirus Securities.
The firm believes that the demand for entry-level SKUs has begun to improve, which is expected to drive further growth.Also Read: Is it wise to buy PSU stocks as Sitharaman retained FM in Modi cabinet?The brokerage stated that the company lost its path after Mr D'Souza's departure in December 2019, resulting in substantial losses in channel engagement, poor performance, and delayed product launches. Additionally, the company experienced continued demand pressure in entry-level SKUs post COVID, which led to substantial market share losses for Whirlpool.However, since Mr Narsimhan Eswar took charge, there has been a sharpened focus on bridging product portfolio gaps, improving channel engagement, and implementing strategic initiatives for better channel extraction, it noted.
These internal and external strategic changes, the brokerage believes, are likely to drive market share growth in the mid-to-long term.Also Read: ONGC stock jumps almost 5% as Jefferies sees over 50% upsideRecent trends suggest that brands like Haier and BEKO have been gaining market share, often at the expense of industry giants like LG and Samsung. On the other hand, Whirlpool has successfully defended or marginally increased its market share.
According to the brokerage's channel checks, there are early signs of a revival in entry-level demand. It believes there is a strong case for the company to
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