Stove Kraft tumbles for 10th straight day, down 26% from March high

Shares of recently-listed household appliances company Stove Kraft were trading lower for the 10th straight day, down 6 per cent at Rs 407 on the BSE in intra-day trade on Friday on the back of heavy volumes.

With today’s decline, the stock has slipped 26 per cent from its high of Rs 547 touched on March 3. It had hit a low of Rs 406.95 on February 8. Currently, the stock was trading 6 per cent higher over its initial public offer (IPO) issue price of Rs 385 per share.

Stove Kraft is a kitchen appliances market and owns brands like Pigeon, Gilma, and Black & Decker. The company has an integrated facility at Bengaluru comprising of 12 manufacturing units to manufacture pressure cookers, non-stick cookware, hard anodized cookware, mixer grinders, induction cooktops, LPG stove, glass cooktops, IR thermometer and handy vegetable chopper. Further, the company also has commenced manufacturing LED products in its Bengaluru facility.

Shares of Stove Kraft had staged a strong debut on the bourses on February 5 as the stock got listed at Rs 498, a 29 per cent premium over its issue price of Rs 385 per share on the National Stock Exchange (NSE). On the BSE, it debuted at Rs 467, 21 per cent higher than its issue price.

For the first nine months (April-December) of the financial year 2020-21 (9MFY21), Stove Kraft reported a 368 per cent year-on-year (YoY) jump in its net profit at Rs 62 crore. Revenues grew by 21 per cent YoY to Rs 623 crore during the period. Ebitda (earnings before interest, taxes, depreciation, and amortization) margin improved by 710 basis points (bps) to 14.1 per cent from 6.9 per cent in the same period last fiscal. The company said it has managed to deliver stellar results on the back of volumes growth, led by good festive, operational efficiencies, better product mix and cost rationalisation programmes.

At 12:39 pm, the stock was down 4.5 per cent at Rs 415 as compared to a 0.13 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped over 10-fold with a combined 455,100 equity shares having changed hands on the NSE and BSE so far.

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