Stove Kraft Ltd. (STOVEKRAFT) AI Stock Analysis

• Market Cap: ₹15.66B
• Dividend Yield: 0.5%
• Average Volume (3M): 6.48K
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.20
• Revenue Growth: 7.89%
• EPS Growth: 32.07%
• Country: IN
• Employees: 5,726
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.15
• Shares Outstanding: 33,107,323
• 10 Day Avg. Volume: 2,545
• 30 Day Avg. Volume: 6,481
• PEG Ratio: 4.77
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 50.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹506.00 ▼(-13.50% Downside)

Stove Kraft Ltd. has a positive financial trajectory with improving revenue and profit margins, which is a significant strength. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. The low dividend yield further limits its attractiveness to income-focused investors.

Positive Factors

Margin Expansion

A sustained jump in gross margin reflects lasting improvements in pricing power, product mix, or cost structure. Higher gross margins provide durable room to absorb SG&A or input-cost shocks, fund marketing and R&D, and support healthier operating profits over the medium term.

Improved Cash Generation

Positive free cash flow signals that core operations now generate excess cash after capex, reducing reliance on external financing. Durable cash conversion strengthens balance sheet flexibility, funds reinvestment or deleveraging, and underpins sustainable operational scaling over 2–6 months and beyond.

Diversified Revenue Streams

Having both branded retail sales and OEM/contract manufacturing creates structural revenue diversification. This reduces reliance on a single channel, improves factory utilization, and smooths demand swings, supporting steadier long-term revenue and margin stability versus single-channel peers.

Negative Factors

Rising Liabilities

A consistent rise in total liabilities, even with moderate debt-to-equity, can erode financial flexibility over time. Higher liabilities increase fixed obligations and interest exposure, constraining capacity for capex, strategic investments, or shareholder returns if cash generation weakens.

Low Net Margin and Margin Volatility

A low net margin near 2.7%, combined with volatile operating margins, limits retained earnings and amplifies sensitivity to raw material or input-price moves. Margin instability undermines forecasting and long-term investment planning, increasing execution risk for sustainable profit growth.

Modest Revenue Growth and EPS Pressure

Modest top-line growth (~3%) alongside negative EPS growth indicates constrained scalability or margin dilution. Without stronger revenue momentum, improvements in profitability and return metrics may be hard to sustain, limiting reinvestment capacity and the company’s ability to build durable earnings power.

Stove Kraft Ltd. Business Overview & Revenue Model

Company Description

Stove Kraft Limited engages in manufacturing and trading of kitchen and home appliances primarily under the Pigeon and Gilma brands. It offers pressure cookers, non-stick cookware, hobs, stainless steel cooktops, gas and induction cooktops, LPG stoves, mixer grinders, chimneys, emergency lamps, ladders and cloth dryers, water bottles and flasks, cleaning and garment care products, and cooking appliances. The company also provides chairs, digital safes, microwave OTG, and ovens; and LED bulbs, battens, downlights. It operates in India, the Middle East, Kenya, Uganda, Qatar, Sri Lanka, Fiji, Bahrain, Kuwait, Oman, and Tanzania. The company was founded in 1994 and is based in Bengaluru, India.

How the Company Makes Money

Stove Kraft generates revenue through the sale of its kitchen appliances and cookware products across various channels, including online marketplaces and offline retail stores. The company's primary revenue streams include direct sales to consumers, distribution agreements with retailers, and partnerships with e-commerce platforms. Additionally, Stove Kraft benefits from brand loyalty and repeat purchases due to its established reputation for quality and customer satisfaction. The company's strategic marketing initiatives and product diversification also contribute to its earnings by attracting a broad customer base.

Stove Kraft Ltd. Financial Statement Overview

Summary

Stove Kraft Ltd. demonstrates solid revenue growth and improving profit margins. The balance sheet shows stable equity growth, though debt levels have increased. The cash flow has improved remarkably, indicating stronger financial health. Despite some operational challenges, the company's financial trajectory appears positive.

Income Statement

Stove Kraft Ltd. shows a strong improvement in gross profit margin, reaching approximately 38.1% in 2025 from 21.1% in 2024. Net profit margin slightly improved to 2.7% in 2025. Revenue growth is robust, with a 6.3% increase from 2024 to 2025. However, EBIT and EBITDA margins have been fluctuating, indicating some operational challenges.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating balanced leverage. However, there has been a consistent increase in total liabilities. Return on equity remains modest, and the equity ratio indicates a stable financial structure, with stockholders' equity increasing over the years.

Cash Flow

Free cash flow has significantly improved, turning positive in 2025. The operating cash flow to net income ratio is strong, reflecting efficient cash generation. However, the company previously faced challenges with negative free cash flow, which has been addressed in recent years.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.75B	14.50B	13.64B	12.84B	11.30B	8.53B
Gross Profit	5.00B	5.52B	2.88B	4.20B	3.35B	2.79B
EBITDA	1.52B	1.51B	1.18B	970.92M	939.87M	1.14B
Net Income	407.37M	385.05M	341.35M	357.70M	562.15M	811.84M
Balance Sheet
Total Assets	0.00	12.04B	10.97B	8.97B	7.28B	5.70B
Cash, Cash Equivalents and Short-Term Investments	95.05M	95.05M	71.30M	25.26M	4.05M	294.53M
Total Debt	0.00	3.71B	3.18B	1.63B	1.55B	524.06M
Total Liabilities	-4.71B	7.33B	6.58B	4.94B	3.64B	2.68B
Stockholders Equity	4.71B	4.71B	4.39B	4.03B	3.64B	3.01B
Cash Flow
Free Cash Flow	0.00	478.50M	-10.86M	-222.41M	-1.17B	466.22M
Operating Cash Flow	0.00	1.30B	1.13B	763.05M	-53.49M	1.10B
Investing Cash Flow	0.00	-794.49M	-886.32M	-1.04B	-1.15B	-663.94M
Financing Cash Flow	0.00	-548.25M	-193.48M	298.10M	916.20M	-291.45M

Stove Kraft Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 585.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STOVEKRAFT, the sentiment is Neutral. The current price of 585 is above the 20-day moving average (MA) of 521.35, above the 50-day MA of 564.07, and below the 200-day MA of 613.60, indicating a neutral trend. The MACD of -22.49 indicates Negative momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 48.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:STOVEKRAFT.

Stove Kraft Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOODLUCK	76 Outperform	₹35.45B	21.30	―	0.38%	9.57%	3.24%
BUTTERFLY	66 Neutral	₹10.54B	26.57	―	―	7.32%	―
PASHUPATI	62 Neutral	₹12.63B	96.25	―	0.06%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ICEMAKE	58 Neutral	₹11.37B	74.89	―	0.28%	33.81%	-39.04%
STOVEKRAFT	55 Neutral	₹15.66B	41.86	―	0.50%	7.89%	32.07%