Analyst's Diary: Catching the cusp

Dalal Street's apathy towards most consumer durable stocks in recent years is just. Rising competitive intensity, tighter regulations, and a battered supply chain following the pandemic made losses common in the industry. Whirlpool Of India, a prominent player in the consumer durable space, was a notable casualty of this downturn. Between FY20-24, its annual sales growth stagnated at a meagre 3 per cent, and its operating profit margin contracted a worrying 600 basis points. Add to this a sharp drop in the parent company's stake from 75 per cent to 51 per cent, and it's no surprise the stock was down 55 per cent from its 2021 peak by February 2024.