Stove Kraft shares gain 16% on debut after touching high of Rs 496

Shares of kitchen appliances maker Stove Kraft gained 16 per cent on Friday, their trading debut. The stock ended at Rs 456, with a gain of Rs 61, or, 16 per cent, over IPO price of Rs 385. It touched a high of Rs 496 and a low of Rs 435. At the closing price, the company had market capitalisation of Rs 1,451 crore.

The stock currently trades at about 25 times its estimated earnings for FY21—similar to Butterfly Gandhimati but almost half that of TTK Prestige.

“Notably, peers enjoy stronger balance sheet and proven earnings record compared to Stove Kraft. Despite being into operation for more than two decades and setting up strong distribution network, Stove Karft has not delivered up to the mark. While sharp improvement in earnings in 1HFY21 bodes well, we are not certain about the sustainability of the same,” Reliance Securities had said in a note last month.

Stove Kraft IPO, which had closed on January 28, had garnered 18 times subscription.

The company owns brands like Pigeon, Gilma, and Black & Decker. The company had raised Rs 95 crore in fresh capital through the IPO.

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