Voltas vs Whirlpool Of India: Best Consumer Durables Stocks

Company Overview of Whirlpool Of India Ltd

Whirlpool of India Limited is an Indian company that manufactures and markets a wide range of home appliances. It primarily focuses on producing and trading refrigerators, washing machines, air conditioners, microwave ovens, kitchen appliances, and small appliances, serving both domestic and international markets. 

Additionally, it provides product development and procurement services to Whirlpool Corporation in the U.S. and other group companies. Its refrigerator range includes single, double, three-door, bottom mount, side-by-side, and four-door models.  

Company Overview of Voltas Ltd

Voltas Limited is an India-based provider of air conditioning and engineering solutions, specializing in project execution. The company operates through three main segments: Unitary Cooling Products, Electro-Mechanical Projects and Services, and Engineering Products and Services.

The Unitary Cooling Products segment focuses on the manufacturing, sale, and after-sales service of cooling appliances and cold storage products, along with facilities maintenance and hard services. This includes operations and maintenance contracts across various sectors, retrofits, and energy management services.  

The Stock performance of Whirlpool Of India Limited

The table below displays the month-by-month stock performance of Whirlpool of India Ltd for the past year.

The Stock performance of Voltas Limited

The table below displays the month-by-month stock performance of Voltas Ltd for the past year.

Fundamental Analysis of Whirlpool Of India

Whirlpool of India Ltd is a prominent manufacturer of household appliances, renowned for its commitment to quality and innovation. Established as a subsidiary of the global Whirlpool Corporation, the company operates with a mission to enhance the lives of its consumers through cutting-edge technology and energy-efficient products. Its extensive range includes refrigerators, washing machines, and kitchen appliances, all designed to meet the evolving needs of Indian households.  

The stock is currently priced at ₹999.60, with a market capitalization of ₹12,974.55 crore. Over the past year, it has declined by 24.91%, and the 6-month return is down by 52.41%. The stock is 145.07% below its 52-week high, reflecting significant underperformance. Despite this, it has a 5-year average net profit margin of 5.48%.  

• Close Price ( ₹ ): 999.60
• Market Cap ( Cr ): 12974.55
• Dividend Yield %: 0.49 
• 1Y Return %: -24.91
• 6M Return %: -52.41
• 1M Return %: -40.16
• 5Y CAGR %: -14.61
• % Away From 52W High: 145.07
• 5Y Avg Net Profit Margin %: 5.48 

Fundamental Analysis of Voltas

VOLTAS is a prominent Indian engineering and air conditioning company, established in 1954. A subsidiary of the Tata Group, it has earned a strong reputation for providing innovative cooling solutions and comprehensive HVAC systems. Its expertise spans sectors such as residential, commercial, and industrial air conditioning, making it a leader in the market.   

The stock is currently priced at ₹1241.60, with a market capitalization of ₹41,312.61 crore. Over the past year, it has returned 13.16%, but the 6-month return has decreased by 22.77%, and the 1-month return is down by 23.19%. Despite this, it has shown a 5-year CAGR of 12.31% and maintains a 5-year average net profit margin of 4.58%, reflecting consistent profitability. 

• Close Price ( ₹ ): 1241.60
• Market Cap ( Cr ): 41312.61
• Dividend Yield %: 0.44 
• 1Y Return %: 13.16
• 6M Return %: -22.77
• 1M Return %: -23.19
• 5Y CAGR %: 12.31
• % Away From 52W High: 56.64
• 5Y Avg Net Profit Margin %: 4.58 

Financial Comparison of Whirlpool Of India and Voltas

The table below shows a financial comparison of Whirlpool of India Ltd and Voltas Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of Whirlpool Of India and Voltas

The table below shows a dividend paid by the company.

Advantages and Disadvantages of Investing in Whirlpool Of India

Whirlpool of India Ltd

The primary advantage of Whirlpool of India Ltd lies in its strong brand recognition and diverse product range, which includes home appliances like refrigerators, washing machines, and air conditioners. The company’s focus on innovation and customer-centric solutions positions it well in India’s growing home appliance market.

1. Wide Product Range – Whirlpool offers a variety of home appliances, including refrigerators, washing machines, microwaves, and air conditioners. This diverse product portfolio helps the company cater to different customer segments, from budget-conscious buyers to those seeking premium appliances.
2. Strong Brand Presence – Whirlpool is one of the leading players in the home appliance sector in India, with strong brand recognition. Its focus on quality, durability, and innovation has helped it build trust and loyalty among Indian consumers, giving it a competitive advantage.
3. Focus on Innovation and Technology – Whirlpool continuously invests in advanced technologies and innovative designs for its products. By offering energy-efficient appliances and smart features, Whirlpool stays competitive and aligns with consumer demands for eco-friendly and tech-savvy solutions.
4. Expanding Retail and Distribution Network – The company is continuously expanding its retail presence across India, both online and offline. Whirlpool’s growing distribution network ensures that its products reach consumers in both urban and rural areas, increasing market penetration.
5. Strong Financial Performance – Whirlpool of India has demonstrated consistent revenue growth and profitability, supported by its extensive product range and strong distribution network. This financial stability allows the company to reinvest in research and development for continued innovation and market growth.

The main disadvantage of Whirlpool of India Ltd is its high dependence on the domestic market, making it vulnerable to economic downturns, changing consumer preferences, and competition from local and global players, which can affect sales and profitability.

1. Intense Competition – Whirlpool faces strong competition from both global brands like Samsung, and LG, and local players like Godrej and Bajaj. This fierce competition pressures pricing, affects market share, and forces continuous innovation to maintain consumer interest.
2. Dependence on Economic Growth – As a home appliance manufacturer, Whirlpool is heavily impacted by economic conditions in India. Recessions, inflation, and slow economic growth reduce consumers’ purchasing power, limiting demand for durable goods and negatively impacting sales.
3. Fluctuating Raw Material Costs – Whirlpool depends on key raw materials like steel, plastics, and copper, the prices of which are susceptible to market volatility. Rising costs of these materials can squeeze profit margins, impacting profitability and pricing strategies.
4. Changing Consumer Preferences – Consumer demand for smart, energy-efficient, and eco-friendly appliances is increasing. Whirlpool must continuously adapt its product offerings to meet these evolving preferences, requiring significant investment in research and development to stay ahead of market trends.
5. Regulatory and Environmental Risks – The company faces challenges from regulatory requirements and environmental concerns related to product manufacturing and disposal. Adapting to changing environmental regulations or meeting sustainability goals may lead to increased operational costs and affect future growth prospects.

Advantages and Disadvantages of Investing in Voltas

Voltas Ltd

The primary advantage of Voltas Ltd lies in its diverse product portfolio and strong market presence in the air conditioning and cooling products sector. The company is known for offering high-quality products that cater to both residential and commercial needs, ensuring broad market appeal.

1. Wide Product Range – Voltas manufactures a variety of air conditioners, refrigerators, and water coolers, as well as providing cooling solutions for commercial applications. Its diverse product range enables the company to cater to multiple market segments, both residential and industrial.
2. Strong Brand Recognition – Voltas is a well-established brand in the HVAC (Heating, Ventilation, and Air Conditioning) industry in India. Its reputation for delivering reliable and energy-efficient products has helped it build significant brand equity in the competitive home appliance market.
3. Focus on Innovation and Technology – The company invests heavily in research and development to stay competitive in the evolving market. Voltas focuses on creating energy-efficient, eco-friendly solutions and adopting the latest technologies, which helps it meet consumer demands for smart home devices.
4. Extensive Distribution and Service Network – Voltas has an expansive distribution network and an established presence across India, with service centers in remote regions. This extensive reach ensures that the company can maintain customer satisfaction and secure repeat business from its customer base.
5. Financial Stability and Market Leadership – Voltas has demonstrated strong revenue growth and profitability over the years. Its well-established market position in the air conditioning and cooling sector, coupled with strong financial performance, provides stability and ensures long-term success.

The main disadvantage of Voltas Ltd is its heavy reliance on the seasonal demand for air conditioning and cooling products. The company faces reduced sales during the off-season months, which can lead to volatility in revenue and profit margins.

1. Seasonal Demand Volatility – Voltas experiences a significant portion of its revenue from the summer season when demand for air conditioners peaks. The off-season months may lead to fluctuating sales, requiring careful inventory and financial management to maintain profitability throughout the year.
2. Intense Competition – Voltas faces strong competition from both domestic and international brands like Daikin, LG, and Samsung. This competition affects market share, forcing Voltas to continuously innovate and offer competitive pricing, impacting profit margins.
3. Dependence on Raw Material Prices – The cost of manufacturing air conditioning units and other products is highly dependent on the price of raw materials like steel, copper, and plastics. Fluctuating raw material costs can lead to higher production expenses, squeezing profit margins.
4. Economic Sensitivity – As a producer of consumer electronics, Voltas’ sales are influenced by economic conditions. During periods of economic slowdowns, consumers may reduce spending on non-essential goods like air conditioners, leading to declining sales and affecting overall growth.
5. Environmental and Regulatory Compliance – Voltas is required to comply with various environmental regulations related to energy efficiency and recycling. Changes in government policies regarding product sustainability, refrigerants, and waste disposal could lead to higher operational costs and affect overall profitability.

How to Invest in Voltas and Whirlpool Of India Stocks?

To invest in Voltas and Whirlpool of India stocks, you first need to open a demat and trading account with a registered stockbroker. It’s important to conduct research and monitor the companies’ performance.  

1. Open a Demat and Trading Account – Choose a reliable stockbroker like Alice Blue to open a demat and trading account. This account allows you to securely hold and trade Voltas and Whirlpool of India shares.
2. Conduct Market Research – Analyze both companies’ financial health, growth prospects, and market position. Consider their annual reports, quarterly results, and future plans. This research will help you make informed decisions about your investment strategy.
3. Use a Trusted Stockbroker – Using Alice Blue provides access to a user-friendly platform with real-time stock data, technical analysis tools, and expert guidance. This helps you make well-informed decisions when buying shares of Voltas or Whirlpool of India.
4. Place Buy Orders Strategically – Once you’ve decided on the number of shares to purchase, place your buy orders for Voltas or Whirlpool of India through the trading platform. Use either market orders or limit orders, depending on the current stock price.
5. Monitor and Manage Investments – Regularly monitor the performance of your investments in Voltas and Whirlpool of India stocks. Stay updated with company news, market movements, and industry trends to adjust your portfolio and optimize long-term returns.

Whirlpool Of India vs. Voltas – Conclusion

Whirlpool of India stands out for its strong brand presence and diverse home appliance portfolio, particularly in refrigerators and washing machines. However, it faces challenges from intense competition and sensitivity to economic fluctuations in the consumer goods market.

Voltas excels in the HVAC and cooling solutions market with a wide product range and a strong retail presence. While its focus on innovation and energy-efficient products is a plus, it is impacted by seasonal demand fluctuations and competition in the air conditioning segment.

Whirlpool Of India vs. Voltas – FAQ

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.