Stock Markets: Investors lap Stove Kraft, hoping worst now behind

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By S Jha

New Delhi, September 12: Stove Kraft had made a stellar debut on the stock market in February 2021, listing at Rs 445 per share, to rise to the peak of Rs 1095 each share on October 14, within a span of about eight months. That was more than 100 per cent gain for the investors in a short span of time.

Stove Kraft with its unique design and competitively priced products seeks to challenge the established consumer goods player, especially the kitchen utilities, besides LED lights and a few more electrical goods.

The Covid-19 pandemic cost on the economy soon reflected on the share price movement of the Bengaluru-based Stove Kraft, as it began its downhill journey from the middle of October.

The downward journey of the share price of Stove Kraft was equally matched by the squeeze in the sale and profit figure of the company for 2021.

From October 14, 2021 to June 17, 2022, the share price of Stove Kraft completed one full cycle, from the peak to the bottom of Rs 500 a share, nearly coming back to the IPO listing price on the bourses.

But the financials of the company began afterwards showing improvements in line with the market leaving the scare of the Covid-19 behind.

The peak sales figure of the company was recorded in September, 2021 at Rs 362.84 crores, which also resulted in the operating profit of Rs 40.60 crores. This was closer to its best ever performance in the December 2020 quarter when Stove Kraft had clocked an operating profit of Rs 42.76 crores on a sales figure of Rs 294.68 crores. That was two quarters before the company came up with its IPO.

Afterwards, the company’s financials went into deep dive, as it took the hit of the pandemic in the December quarter of 2021 and the March quarter of 2022. The June quarter of 2022 appears to have snapped from the falling curve, which is also being reflected in the share price movement of the company.

After making the bottom in June, Stove Kraft has clocked almost 45 per cent gains by September, in three months, while it has gained over 25 per cent in the last one month.

Stove Kraft in the recent months has sought to hop on to the inorganic path to grow by acquiring a couple of small-sized companies.

(Disclaimer: This article in no way should be seen as a stock recommendation, as it merely tracks the equity market performance)

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