Whirlpool stock zooms 19% on heavy volumes; Here's what triggered the rally

According to a Reuters report, German engineering group Robert Bosch is weighing a bid for the US appliances manufacturer Whirlpool.

Shares of Whirlpool of India hit an two-year high at Rs 2,190, as they surged 19 per cent on the BSE in Thursday’s intra-day trades on heavy volumes. The stock of household appliances company was trading at its highest level since November 2021. Thus far in the month of June, the stock has rallied 47 per cent. In the past four months, it has zoomed 77 per cent, while, it bounced back 85 per cent from its 52-week low of Rs 1,186.85 touched on February 27, 2024.

A sharp up move in Whirlpool of India’s stock price was triggered today after a Reuters report stated that German engineering group Robert Bosch is weighing a bid for the US appliances manufacturer Whirlpool; a move that would boost its position in the household appliances market.

Bosch has been talking to potential advisers about the possibility of making an offer for Whirlpool, which has a market capitalisation of about $4.8 billion, the news agency reported quoting people familiar with the matter.

As on March 31, 2024, Whirlpool Mauritius Ltd held 51 per cent stake in Whirlpool of India, the shareholding pattern data shows.

At 11:18 am; Whirlpool of India was up 9.5 per cent at Rs 2,011.95, as compared to 0.17 per cent gain in the BSE Sensex. The average trading volumes at the counter more than doubled on Thursday. A combined 1.8 million shares changed hands on the NSE and BSE.

Meanwhile, on June 12, Whirlpool of India, ultimate subsidiary of Whirlpool Corporation, and a renowned brand in the washing machine segment in India, joined hands in a new marketing alliance with Surf Excel, a leading brand of Hindustan Unilever (HUL) to transform and enhance the laundry experience for consumers in India. Through joint marketing initiatives by Whirlpool & Surf Excel, both brands are committed to enhance consumer experience amidst evolving consumer needs, the company had said in an exchange filing.

In the second half of the fiscal year 2023-24 (H2FY24), the company’s consolidated revenue was up by 9.9 per cent driven by deployment of much stronger execution and the effects of product upgrades and innovation. This positive trend stands in contrast to a decline of 3.6 per cent in revenue during the first half of the same fiscal year (H1FY24).

Whirlpool of India said the profits in the first half were impacted by the pricing adjustments undertaken to improve competitiveness and the impact of regulatory cost charge. This was offset by the volume growth, significant cost productivity and mix improvement actions leading to a 51 per cent growth in consolidated PBT (before exceptional items) in H2FY24. Elica business continues to deliver healthy revenue growth with strong profit margins, the company said.