Weak volumes remain an overhang on Whirlpool stock; Q2 sales hit

Volatility in commodity prices and rise in competitive intensity are expected to weigh on margins

The stock of consumer durables major Whirlpool of India has lost about 13 per cent from its highs in August on market share loss and concerns on profitability. The pressure on the stock could continue, given the muted volume recovery in entry level segments, underperformance compared to the sector and margins pressures in the September quarter for the 2022-23 financial year (Q2FY23).

Emkay Research, in a report last month, highlighted that Whirlpool has been the biggest loser in the refrigerator category, shedding 160 basis points (bps) year to date (YTD) and has been losing share each month since the start