
Kitchen appliances maker Stove Kraft, on Friday, opened with a strong premium of 29.35 per cent on the NSE on its debut day. The stock opened at Rs 498 on the exchange, against issue price of Rs 385, while on the BSE, it rose 21.30 per cent to Rs 467 in the opening.
Meanwhile, Nifty50 surpassed 15,000 mark for the first time and the BSE Sensex traded decisively above the 50,000-mark. On the NSE, it was trading at Rs 464, up 20.52 per cent with volumes of 23.92 lakh equity shares, at 10:02 hours IST. It was quoting at Rs 476.05, up 23.65 per cent over issue price on the BSE, with volumes of 2.21 lakh shares.
Stove Kraft which is an established player in kitchen solutions segment since ’99, raised Rs 413 crore via public issue which was subscribed 18 times during January 25-28. The company will utilise fresh issue proceeds for repayment of debts.
Over the years, the brand has grown from a single brand small LPG stove manufacturing company to become one of India’s leading manufacturers of kitchen appliances. It caters to the semi-premium and premium customers with brands like Pigeon, Gilma and BLACK +DECKER.
The kitchen appliances maker reported a growth in revenue at a CAGR of 13 per cent during FY18-FY20. “The company had a low operating margin profile over FY18-FY20 with an EBITDA margin in the range of 2-5 per cent, said ICICI Direct.
In the first half of FY21, the company reported improved performance with an EBITDA margin of 13.7 per cent and net profit of Rs 28 crore on account of a significant reduction in operating expenses. Sustainability of improved profitability performance remains a critical factor, the brokerage feels.