Stove Kraft Ltd Q1 FY25 FY24 – From Pressure Cookers to IKEA Cookware, But Still Pressure on Margins
1. At a Glance
Stove Kraft Ltd (BSE: 543260, NSE: STOVEKRAFT) — the company behind Pigeon (value), Gilma (semi-premium), and India’s exclusive partner for BLACK+DECKER appliances — is currently valued at ₹2,272 Cr. Stock trades at ₹684, closer to its 52-week low of ₹525 than the peak of ₹977, reminding investors that kitchen fires aren’t the only burns here.
Numbers? Revenue ₹1,475 Cr, PAT a modest ₹40.7 Cr, OPM ~10.5%. EPS is ₹12.3, making the P/E a rich 55.8x, way above your neighborhood LPG refill price hike. Debt stands at ₹348 Cr with promoter holding at 55.8%, but 14.6% of that is pledged — the corporate version of pawning gold jewelry during off-season.
So the question is: is Stove Kraft cooking up growth or just frying investors in its own oil?
2. Introduction
Born in 1999, Stove Kraft wanted to be the “kitchen of India.” It started with LPG stoves and pressure cookers, and then branched into non-stick cookware, mixer-grinders, chimneys, LED bulbs (yes, really), and even oximeters during the pandemic. Today, it boasts a product portfolio that could stock your home from breakfast to dinner — and maybe even light up your house in a power cut.
But here’s the kicker: despite strong distribution (1.29 lakh outlets, 191 stores, franchise expansion), revenues grow only in single digits, margins are wafer-thin, and debt is inching up. Investors pay FMCG-style valuations for a company that behaves like a low-margin durables manufacturer.
And just when it seemed smooth, November 2023 brought an income tax raid — proof that when things heat up in Indian kitchens, IT officials also want a bite.
3. Business Model – WTF Do They Even Do?
Simple logic: they want to own your kitchen.
Pigeon – the budget brand; sells to everyone from Tier-1 housewives to Tier-3 bachelors.
BLACK+DECKER – exclusive India partner, aimed at aspirational buyers who want international branding.
Product mix (Q1 FY25):
Mixers/Small Appliances/Others: 36%
Non-stick cookware: 25%
Pressure cookers: 21%
Induction cooktops: 8%
Gas cooktops: 7%
LEDs: 3%
Essentially: 60% traditional kitchen (cookware + cookers), 36% appliances, rest gimmicks. Exports are 12%, mostly to 14 countries including US, Gulf, and SE Asia.
So, WTF do they do? Everything you’d find in a kitchen, except consistent profits.
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY25)
YoY Qtr (Q1 FY24)
Prev Qtr (Q4 FY24)
YoY %
QoQ %
Revenue
₹340 Cr
₹314 Cr
₹313 Cr
8.2%
8.6%
EBITDA
₹36 Cr
₹32 Cr
₹29 Cr
12.5%
24.1%
PAT
₹10.4 Cr
₹8.2 Cr
₹1.0 Cr
27.2%
940%
EPS (₹)
3.16
2.48
0.44
27%
618%
Annualised EPS = ₹12.6. At CMP ₹684 → P/E ~54x.
Comment: Looks like a turnaround quarter, but one good qtr doesn’t bake the whole cake.
