Author: Prashant Marathe
Date Published: May 21, 2025
🧾 At a Glance
- Total Income (Q4): ₹314.30 Cr
- Net Profit: ₹1.45 Cr
- EPS (Q4): ₹0.44
- CMP: ₹600
- EduFair Value: ₹320–₹370
👉 Verdict: Stock looks premium. But profits? Burnt toast.
🍳 About the Company
Stove Kraft Ltd is the company behind:
- 🔥 Pigeon (mass cookware)
- 🍲 Gilma (modular kitchens)
- 🔌 Kitchen appliances (induction, pressure cookers, etc.)
Basically: it’s the Tupperware of Indian middle-class kitchens, but on BSE.
📊 FY25 Earnings Overview
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| Q1 | 315.48 | 8.20 | 2.48 |
| Q2 | 416.45 | 16.71 | 5.06 |
| Q3 | 403.98 | 12.14 | 3.67 |
| Q4 | 314.30 | 1.45 | 0.44 |
Total FY25 PAT ≈ ₹38.5 Cr
EPS FY25 = ~₹11.65
Not terrible. But Q4 crashed — hard.
🧠 EduInvesting Take
“You can’t sell pressure cookers with 0.44 EPS and a 600 rupee price tag.”
✅ Established brand
✅ Strong Q2–Q3 showing
❌ Q4 collapse = serious concern
❌ Revenue drop = pricing/margin pressure
Unless Q4 was a one-off, this is a problem.
🧮 EduFair Value Estimate
- EPS = ₹11.65
- P/E = 28–32 (consumer appliances, midcap)
✅ EduFair Value = ₹320 – ₹370
CMP = ₹600 → 📛 Overvalued by ~40–50%
Market’s still pricing it like a high-growth D2C brand. It’s not.
⚠️ Risks
- 📉 Price war from Kent, Prestige, local brands
- 🔧 Channel stuffing during festive sales
- 🛒 Amazon/Flipkart commission cuts eating margin
- ❌ No moat — just market presence
💸 CMP vs Fair Value
| Metric | Value |
|---|---|
| CMP | ₹600 |
| EPS (FY25) | ₹11.65 |
| Fair Value | ₹320–₹370 |
| P/E at CMP | ~51x (!?) |
🏁 EduFinal Word
Stove Kraft was hot in Q2. Cold in Q4.
Right now, it’s overpriced and underperforming.
Edu Verdict:
Avoid fresh entry. Wait for ₹400 or lower. This isn’t cooking anything new.
