Whirlpool of India Limited (NSE:WHIRLPOOL) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share fell badly short of expectations, coming in at ₹1.98, some 45% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹46b. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Whirlpool of India after the latest results.
Following the latest results, Whirlpool of India's ten analysts are now forecasting revenues of ₹90.6b in 2027. This would be a reasonable 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 32% to ₹24.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹89.8b and earnings per share (EPS) of ₹25.96 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
Check out our latest analysis for Whirlpool of India
It might be a surprise to learn that the consensus price target was broadly unchanged at ₹939, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Whirlpool of India at ₹1,202 per share, while the most bearish prices it at ₹712. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Whirlpool of India shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Whirlpool of India's past performance and to peers in the same industry. The analysts are definitely expecting Whirlpool of India's growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Whirlpool of India is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Whirlpool of India's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Whirlpool of India. Long-term earnings power is much more important than next year's profits. We have forecasts for Whirlpool of India going out to 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Whirlpool of India you should be aware of.
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