Stove Kraft
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Stove Kraft's recent Q4 results showcased a robust 32% year-over-year revenue increase, reflecting strong demand for its kitchen and home appliances. Management's guidance for a 15% revenue growth in FY27 indicates confidence in sustaining this momentum, despite facing some margin pressure attributed to gross margin contraction. This aligns with Vista's forecast of stable revenue growth, supported by a favorable macro environment characterized by improving manufacturing activity and rising consumer demand. The company's stable financial structure, coupled with moderate leverage, positions it well to navigate competitive pricing pressures in the consumer durables sector. However, the competitive landscape remains a watchpoint, as pricing pressures could impact margins. Over the next 12-24 months, key opportunities include leveraging technological advancements and increasing disposable incomes, while headwinds may arise from potential supply chain disruptions and ongoing competitive dynamics. Overall, Vista's outlook remains cautiously optimistic, with a fair valuation reflecting the intrinsic value of the company amidst a stable growth trajectory
Why We Like This Stock
- Strong Q4 results with a 32% YoY revenue increase indicate robust demand
- Management's guidance for 15% revenue growth in FY27 reflects confidence in future performance
- Stable financial structure and moderate leverage enhance resilience against competitive pressures
Things To Watch Out For
- Gross margin contraction poses a risk to overall profitability
- Competitive pricing pressures may challenge margin stability
- Potential supply chain disruptions could impact operational efficiency
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,361 | 1,448 | 1,607 | 1,949 | 2,113 |
| Profit Before Tax (Cr.) | 47 | 50 | 51 | 74 | 79 |
| PBT Margin | 3.5% | 3.5% | 317.4% | 3.8% | 3.7% |
| Net Profit (Cr.) | 34 | 39 | 39 | 57 | 61 |
| Earnings Per Share | 10.2 | 11.9 | 11.9 | 17.3 | 18.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ▲ Buy | 1,000 | 05-Aug-2026 |
Company Overview
Show Company Profile
Stove Kraft Limited manufactures and trades in kitchen and home appliances in India and internationally. The company offers pressure cookers, cookware, cooktop, induction and infrared cooktops, chimney and hobs, and cooking appliances; mixer grinders, wet grinders, dough maker, nutri mixer, and blendo; choppers, knives, and other; fabric care, and cleaning products; water bottles and flasks lunch boxes; fans; and other personal care items under Pigeon brand. It also provides chimneys, hobs, cooktops, ovens, locker, and air fryers under Gilma brand; and steam oron, garment steamer, and dry iron; kettle, sandwich maker, toaster, and coffee maker; rice cooker, juicer, induction, hand blender, and chopper; and heating product under Black+Decker brand. In addition, the company offers LED bulbs, emergency bulbs, battens, and downlights under Pigeon LED brand. The company operates through a distribution network of retail outlets. Stove Kraft Limited was founded in 1994 and is based in Bengaluru, India.