Stove Kraft Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹849.00+₹3.00 (+0.35%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Stove Kraft Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Stove Kraft Limited engages in the manufacture and sale of kitchen and home solutions in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees5,543

Annual revenue₹1,576 Cr

How does it make money?

Turns over ₹1,576 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 5,543 employees supports ₹28.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin10.0%

Net margin2.7%

Revenue / employee₹28.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of 12.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE12.5%

ROE8.3%

Peer median ROE17.1%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 13.7% and earnings to grow about 33.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.7%

Est. earnings growth+33.4%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +25% while net margin moved -6% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+25%

Margin effect-6%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.3% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

57.4x

3Y Median

56.7x

40 monthly readings · mean 57.7x · range 38.6x–86.5x

Sector Median

68.5x

median of 3 sector peers

🟡Currently trading close to its 3y median of 56.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 16% below the peer median of 68.5x.

vs. its own history

Fair

56.7x median over 40 months · +1%

vs. sector peers

Fair

68.5x median of 3 peers · -16%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

57.4x

P/B

5.57x

EV/EBITDA

18.9x

PEG

10.46

Dividend Yield

0.41%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.9% to 10.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.97 — near-term obligations exceed near-term assets.

Red Flags

1 item require attention · 1 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.97 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.9% to 10.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹147 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 7.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 10.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 6% a year✓ 7.8% CAGR
Latest reported year was 41.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹147 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹2,811 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

57.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.57x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹14.78

Profitable

Profitable on a per-share basis

ROE

8.3%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

41.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

63.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.41%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹147 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹849

P/E (Forward)

31.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.3%

Average

Average margins

Net Margin

2.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.97

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

93%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

817.7 / 812.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,258 Cr	₹1,337 Cr	₹1,418 Cr	₹1,576 Cr	+7.8%
EBITDA	₹99 Cr	₹129 Cr	₹154 Cr	₹158 Cr	+17.0%
EBITDA Margin	7.9%	9.7%	10.9%	10.0%	—
PAT (Net Profit)	₹36 Cr	₹34 Cr	₹39 Cr	₹42 Cr	+5.5%
EPS	₹10.86	₹10.3	₹11.64	₹12.69	+5.3%
ROE	8.9%	7.8%	8.2%	8.3%	—
ROCE	13.1%	12.1%	12.2%	12.5%	—
Total Debt	₹163 Cr	₹256 Cr	₹362 Cr	₹193 Cr	+5.8%
Free Cash Flow	-₹22 Cr	-₹1 Cr	₹48 Cr	₹147 Cr	—

🟢 Revenue has grown at 7.8% a year over 3 years.

🟢 EBITDA has grown at 17.0% a year over 3 years.

🟢 EBITDA Margin has risen from 7.9% to 10.0% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 5.5% a year over 3 years.

🟢 EPS has grown at 5.3% a year over 3 years.

🟡 ROE has held roughly flat at 8.3% over 3 years.

🟡 ROCE has held roughly flat at 12.5% over 3 years.

🔴 Total Debt has grown at 5.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹22 Cr to ₹147 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,174 Cr

Total Liabilities

₹670 Cr

Total Debt

₹193 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹258 Cr

Capex

-₹111 Cr

Shareholding (proxy)

Institutional Holding

6.3%

Insider Holding

60.3%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹815

-4.0% vs CMP

Target Range

₹595 – ₹1,000

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

3 mixed3 general

Stove Kraft vs Nifty 50: 1Y Return +20.19% vs -10.93%

Univest, 12 Oct

Stocks to buy in 2026 for long term: Ather Energy, Stove Kraft among 5 stocks that could give 10-20% return

The Economic Times, 24 Jun

Stove Kraft Limited Beat Revenue Forecasts By 16%: Here's What Analysts Are Forecasting Next

Simply Wall Street, 06 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Stove Kraft Standalone June 2026 Net Sales at Rs 480.58 crore, up 41.3% Y-o-Y

Moneycontrol.com, 04 Aug

Stove Kraft Q4 PAT Jumps 317.8%, Net Debt at Zero

scanx.trade, 13 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

TTK Prestige, Gandhimathi, Stove Kraft shares jump up to 15% amid gas supply shortage. Here's why

Livemint, 11 MarPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong13.1/20

🔴GrowthWeak7.4/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding5.3/15

🟡RiskModerate5.8/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 8%10.0%
✗Interest cover stays above 3x2.9x
✓Revenue growth stays above 6% a year7.8% CAGR
✓Free cash flow remains positive₹147 Cr
✓Debt / EBITDA stays below 2x1.2x