Stock Of The Day: Whirlpool At Record On Bosch Bid For Parent

Shares of Whirlpool of India Ltd. surged nearly 20% on Thursday to an all-time high after Reuters reported that German firm Robert Bosch GmbH might try to buy the appliance maker's US-based parent.

Bosch has been in discussions with potential advisers about a potential bid for Whirlpool Corp., whose subsidiary is Whirlpool of India. There is no guarantee that an offer will be made, according to the report by Reuters.

Key Levels To Watch

• Resistance Level: Not applicable (life high)

• Support Level: Rs 1,743 (two-week low)

Whirlpool of India's stock rose as much as 19.7% during the day to Rs 2,199 apiece on the NSE. It was trading 9.26% higher at Rs 2,007.25 per share, compared to a 0.23% advance in the benchmark Nifty at 11:13 a.m.

The share price has risen 47.42% on a year-to-date basis and 37.86% in the last 12 months. The total traded volume so far in the day stood at 4.3 times its 30-day average. The relative strength index was at 82, indicating that the stock may be overbought.

Impact Of The Move

Whirlpool shares have faced pressure due to sluggish sales of large household appliances. It has a market capitalisation of about $4.8 billion and if an acquisition is made, that would boost Bosch's position in the household appliances market.

Bosch's home appliance segment, which includes products like dishwashers, fridges and coffee makers, could benefit from cost savings in any Whirlpool deal.

The world's largest auto parts maker has been diversifying beyond its core business due to declining electric vehicle sales, affecting demand from clients like Volkswagen AG and BMW AG. Chief Executive Officer Stefan Hartung indicated at a recent conference that Bosch aims to expand in the US through acquisitions.

Whirlpool Stake Sale Details

In November 2023, Whirlpool Corp. had announced plans to reduce its stake in Whirlpool of India while keeping a majority interest, using the proceeds to cut debt in 2024 and enhance balance sheet flexibility.

On Feb. 20, Whirlpool Mauritius sold 3 crore shares (23.95%) at Rs 1,277.02 apiece. This move brought down the stake of Whirlpool Corp. in Whirlpool of India to 51% from 75%, retaining control post-transaction.

Whirlpool Corp's Strategic Plans

High single-digit compound annual growth rate in revenue and EBIT margin expected in India over the long term. Whirlpool Corp's segmental EBIT-margin guidance for Asia stands at 3% against an industry average of 4–6% in 2024.

For 2026, the EBIT-margin guidance for Asia stands at 7%. Revenue expectations from Asia business, including India, for 2026 stand at $1.1 billion against $1.0 billion in 2023.