Stove Kraft Ltd

Analyst Notes

[Analyst View] — Aamara Capital, 17 Oct 2026

Business Deep-Dive

Products — category by category

Brands

Services: centralised CRM, call centre, WhatsApp and service partners. The FY23 BRSR logged 458,725 complaints/service requests, with 3,453 pending at year-end. The "Ex Ko Karo Exchange" campaign (Q1 FY27) offers up to 50% off against any old appliance.

Processes and technology

• Cookers and cookware: aluminium and stainless circles are blanked, deep-drawn and spun, then hard-anodised and PTFE- or ceramic-coated. Cast iron comes from the in-house foundry (commissioned FY25, ₹40 Cr). Gaskets and handles are moulded in-house, and glass lids are indigenised. Triply circles are bought in today; the China JV is to make them from Dec 2026.
• ICT and small appliances: injection moulding, sheet metal, coil winding, motor assembly, PCB population (now components only, no finished PCBs), assembly and test.
• Gas cooktops and chimneys: stainless fabrication, bought toughened glass, brass burners, BLDC motors.
• R&D: 18 people, plus unnamed foreign technology tie-ups; a China sourcing/QA team. R&D spend is not disclosed.
• Job work: the Q1 FY27 ICT surge pushed some output to outsourced makers, adding ~1.2 pts of sales to other expenses. Management says this is "not a continuing cost". It contradicts the "not dependent on third party" claim.

Facilities

ICRA's FY26 capex view rose from ₹50–55 Cr (Jun 2025) to ₹70–80 Cr (Dec 2025). Core manufacturing capex is to stay ≤₹25 Cr a year.

Certifications, IP, ESG, exports

Segment Analysis

Category revenue [Est.] (₹ Cr; disclosed share × revenue)

*The cooker growth figure equals total revenue growth and may be a duplication; treat as unverified. Bottom-up FY26 ICT base used for guidance maths: ~₹160–175 Cr (narrative), vs ~₹193 Cr on pie share.

• Fastest grower — ICT: +23.9% in FY26, +89.4% in Q4 FY26, +315.9% in Q1 FY27. ICT added ~₹99 Cr of the ₹140.5 Cr YoY increase (~70%) [Est.]. Management expects ICT at "20%+" of FY27 revenue and "2x" FY26.
• Under pressure: gas cooktops (−6.9%; the company exited a co-branded oil-company channel that was 60–70% of cooktop sales); small appliances (−2.2%, lines diverted to ICT; FY26 volume +32% but value +9%; in Q3 FY26 volume +38.7%, value −6%; mixer-grinders called "a margin drainer"); "Others" brands (−74% in two years).
• Premiumisation: non-stick value +9.6% on volume −11.6% (cast iron, ceramic, triply).

Brands (₹ Cr)

Brand sums fall ₹27–42 Cr short of reported revenue (FY26 ₹1,565 vs ₹1,607 Cr). The gap is not reconciled by the company; it is probably other operating revenue, scrap and incentives. Some media quote FY26 revenue of ₹1,599 Cr; the market input gives standalone at ₹1,605 Cr.

Channels

Region: South ~50% of sales (management; a third-party ~75% figure conflicts), ranked South > West > North > East. Strongest states: Kerala, Karnataka, Tamil Nadu (FY23 BRSR). Store split at Nov-2025: South 205, North 67, West 26, East 3.

Management focus by segment

Financials: P&L

Five-year annual P&L (standalone, ₹ Cr)

*StockAnalysis basis, ~1–1.5 pp below company basis. **Screener operating profit. FY21 (IPO year, COVID peak): revenue ₹859 Cr, EBITDA ₹114 Cr (13%), PAT ₹81 Cr at nil tax (carried-forward losses). Revenue CAGR FY21–26 13.3%; only ~6% p.a. FY23–25. ICRA-adjusted OPBDITA margin: 9.1% FY24, 10.7% FY25.

Last eight quarters (₹ Cr)

YoY bases: Sep-23 380/40/16.5; Dec-23 362/30/6.8; Mar-24 325.2/24.8/2.7; Jun-24 314.5/31.7/8.2. Q2 FY26 is derived (FY26 less Q1, Q3, Q4). Q2 FY25 EBITDA is from Screener. Q3 FY26 EBITDA: filing-derived ₹34.3 Cr; call headline ₹35.3 Cr (9.3%); ScanX ₹31.8 Cr (8.4%), the difference likely being ₹4.65 Cr of one-offs. Q1 FY26 cut the store lease term from 9 to 3 years, lowering quarterly D&A from ~₹21 Cr to ~₹17 Cr, which flatters FY26 vs FY25.

Q1 FY27 detail

One-offs and normalisation

Every Q4 has booked a net tax credit (Q4 figures are full year minus 9M). Q4 FY26 absorbed ₹69.3 mn of other losses (mostly FX), offset by a ₹13.7 mn ECL write-back. Earnings are concentrated in Q1 and Q2 (₹10–21 Cr each). The FY26 tax rate of 17.6% reflects a ₹2.6 Cr deferred-tax credit and a Q4 current-tax reversal.

Margin trend and earnings quality

• Gross margin is up ~6 pp since FY23 (backward integration, premiumisation, pass-through). Targets: 40–42% gross margin in 2–3 years, 14–15% EBITDA medium term, 7% PAT long term.
• Operating leverage has not reached PAT. D&A went from 1.7% of revenue (FY22) to 4.9% (FY26), finance cost is ~2%, and EBIT margin in FY26 (4.9%) was below FY22 (6.6%).
• ECL swings (₹4.3 / 9.5 / 3.6 / 1.4 Cr charges, then a ₹4.9 Cr write-back) move EBITDA margin by up to 1 pp. Before ECL, EBITDA margin was 10.4% vs 10.6% in FY26 (₹167.5 vs ₹154.3 Cr) and 9.2% vs 9.7% in Q4 FY26.
• Cash backing: OCF/EBITDA was 77–95% in FY23–25 and 155% in FY26 (WC-driven). See Tab 6.
• Growth decomposition: no inorganic growth. FY26 price hikes ~10% (Mar–Apr 2026) plus another round by Q1 FY27; ICT FY26 volume +11.7% vs value +23.9%.

Financials: Balance Sheet, Cash Flow & Ratios

Five-year balance sheet (₹ Cr, 31 Mar)

*StockAnalysis aggregate. FY26 fixed-asset bridge (649.8→597.8): +capex 111.2, +ROU additions 26.5, −D&A 79.5, −ROU reassessment 106.4 (Note 8: store consolidations; lease liabilities −108.0, gain 1.57), −disposals ~2.5 (proceeds 3.1). Other intangibles fell from ₹89.82 mn to ₹16.01 mn against the B&D licence capitalised in FY25 (₹90.71 mn); the reason is unexplained. Current ratio <1 since FY24; quick ratio ~0.25.

Debt ladder — one reconciled set (used in every tab)

The "85% fall" headline compares an FY25 figure that excludes supplier credit with an FY26 figure that includes it. The market input's unexplained "+₹82.6 Cr other financial liabilities" (44.7→127.3) is the SLB identified in the financial statements: proceeds ₹84.78 Cr, repaid ₹8.50 Cr. Non-current other financial liabilities went 16.9→61.8 and current 36.6→65.5. The SLB is accounted as financing, so the assets stay on the books. The counterparty and underlying assets are not disclosed.

Cash flow and FCF (₹ Cr)

Working capital (days)

Inventory is the structural problem (ICRA: FY25 spike from unfulfilled Q4 orders; inventory 123 days on ICRA basis; WC cycle 102 days H1 FY26; below-par inventory management is a downgrade trigger). ~70% of the FY26 CCC improvement came from creditors, now near the FY18 peak of 150 days. MSME payables rose from ₹10.2 Cr to ₹22.6 Cr (watch the s.43B(h) 45-day rule). Payable days in FY26 are 129 in the May deck and 136 in the Aug deck.

Ratios

RoE of 8–9% sits below a ~12–13% cost of equity. The implied cost of debt is ~9–10% (lease interest, supplier-credit charges); Screener flags "cost of borrowing seems high". Narrative-quoted ROCE: 9.6% FY25, 11.2% FY26 (company basis variants).

Debt structure, lenders, rating

Lenders: HDFC, ICICI, Axis, DBS (CARO sanctioned WC limits of 3,200, as tabulated); the market input adds Shinhan (ICRA). Maturity is essentially all short-term. Unutilised limits were ₹34.1 Cr at Sep-25. Liquidity is "Adequate" (ICRA).

ICRA constraints: aluminium/steel exposure; competition from TTK, Hawkins, Butterfly; inventory-heavy WC; changing consumer preferences; reliance on external borrowing. Downgrade triggers: debt/OPBDITA >2.0x sustained, below-par inventory management, debt-funded capex.

Equity dilution and share count

The pool went from 8,13,000 to 10,25,000 (+2,12,000) on 12 May 2026, approved 98.44% at the AGM (~13% of non-promoter votes against). 46,915 options were granted at ₹554.65, vesting 10/20/30/40%. 18,162 options were granted Aug 2025. Historical exercise prices: ₹150, 562.10, 632.65, 479.40, 526.35. Maximum overhang ~2.45 lakh shares (0.74%); dilution since FY22 ~0.7%. FY26 annual report notes were not read (BSE 403).

Management, Promoters & Governance

Promoters (30 Sep 2026)

• Rajendra Gandhi: founder (1999), 24+ years in the industry. Education not disclosed (DRHP not accessible). MD term runs 17 Mar 2025 to 16 Mar 2030. FY26 pay ₹15.83 mn (₹7.78 H1 + ₹8.05 H2), ~3.8% of PAT. Director of Pigeon Appliances Pvt Ltd (company is a shareholder; ₹6.22 mn static receivable), although the website says he "holds no directorship in any other company". His brother is a director of Shinag Allied Enterprises. He brought Sequoia in (~25% pre-IPO) and bought Sequoia's last 775,194 shares on 9–10 Mar 2022 for ~₹50 Cr (~₹645), funded by the pledge. No open-market sales since IPO. Track record: revenue ₹1,134→₹1,607 Cr FY22–26, but ROCE 19%→~11% and PAT still below FY22. Wikipedia calls him "Chairman & MD"; the chair is actually independent.
• Sunitha Gandhi: director Jul 2004–Sep 2016, rejoined later (date not visible).
• Neha Gandhi: BBA Christ University, PG Cert MICA; ex-Viacom18. Earlier led brand; now People, Process & Technology (Head of IT/CTO per MarketScreener since Mar 2024). CSR chair. Reappointed for 5 years from 30 Sep 2026 (99.9999%). Proposed package ~₹90 L (basic 40.04, HRA 22.18, conveyance 12.41, variable 15.40) vs FY26 actual ₹7.03 mn (+28%). Holds 1 share. The evident heir, but her remit is support functions, not P&L.

Key management

Former KMP/ESOP holders (N. Venkitesh, Senthil Kumar R, H.K. Kothari, Shashidhar SK, K.K. Sinha, Sundresha UB, G. Srinivasa Murthy) made routine ESOP exercises and small sales in 2021–23 (<30k shares per trade, up to ~₹1 Cr).

Board (Oct 2026): 8 directors, 4 independent (50%)

Committees (Jun 2024 filing; Audit Committee reconstituted 1 Oct 2026, new composition not visible). Audit: Ramkrishna (C), Shah, R. Gandhi, Mayya. NRC: Shah (C), Gupta, Ramkrishna, Mayya (all independent). SRC: Mayya (C) + 5. CSR: N. Gandhi (C) + 5. Risk: Gupta (C), Shah, Ramkrishna, N. Gandhi, R. Gandhi, Mayya, CFO. IDs met separately on 31 Jan 2026. No ID resignations 2023–26. No investor nominee on the board.

Shareholding trend (%)

Promoter drift is ESOP dilution, not selling. Public institutions voted 69.39% of their shares at the AGM. Trendlyne's 3.8% for Kacholia is an aggregator double count.

Promoter pledge — reconciled

Creations come after drawdowns and releases on recoveries, consistent with a fixed ~2.5–3x cover covenant. The FY26 Reg 31(4) declaration (Apr 2026) shows no other encumbrance, and there were no changes Apr–Oct 2026. Dividends on his stake (~₹6.4 Cr/yr) roughly cover interest, not principal. The pledge was not released during the ~90% rally.

Insider / SAST transactions

Related-party transactions (FY26, ₹ mn)

New for FY27: the Kalro Strategic Advisory Agreement (5 years; ₹2 Cr/yr; Sec 188 office of profit; special resolution passed at 98.27%, with ~14.4% of non-promoter votes against — 364,328 of ~2.53 mn — the highest dissent at the AGM). It is now the largest recurring RPT: ~1.26x MD pay, ~87% of the two executive promoters' combined ₹2.29 Cr, ~4.8% of FY26 PAT. Milestone thresholds, cap and form are not visible. The China WOS and JV become related parties (funding, SBLC, trade). All RPTs had prior Audit Committee approval; AOC-2 not applicable.

Auditors

Subsidiaries and group structure

No subsidiaries at FY26, and no corporate acquisitions since listing. Capital at risk in China: ~₹24 Cr equity + ₹30 Cr SBLC ≈ ₹54 Cr (~11% of net worth). Reg 30 disclosures were timely.

Tax, litigation, regulatory

IT search (Sec 132, Nov 2023): Sec 148 notices for AY19-20 and AY20-21 (revised return for AY20-21). Demand ₹24.53 mn at Mar-26, reduced to ₹13.50 mn by Jun-26 after rectification (this reconciles the two notes). AY19-20 and AY24-25 closed nil; AY22-23 and AY23-24 at CIT(A). SEBI: no actions. NSE fine of ₹7,080 for a 3-day late Mar-26 SHP (BSE filed 9 Apr, NSE 24 Apr, paid 16 May). POSH: nil. No other material litigation found; the DRHP litigation schedule was not reviewed.

Other datapoints: dividend FY26 ₹3.50 (~₹11.6 Cr, ~28% payout); FY25 ₹3.00 (₹99.24 mn paid). Policies (RPT, whistle-blower, insider trading, cyber) adopted. Investor engagement: Goldman Sachs India Supply Chain day (20 May 2026), 360 ONE conference (29 May 2026), Emkay Singapore NDR (Aug 2026).

Supply Chain

↑ Upstream — What Stove Kraft Depends On

Pass-through: "purely cost-plus", with a lag of about one quarter; price hikes ~10% (Mar–Apr 2026) and more by Q1 FY27; export buyers raised purchase prices. ICRA notes an asymmetry: as a value brand, Pigeon passes cost reductions to consumers, and TTK, Hawkins and Butterfly limit pricing flexibility. Gross margin rose from 32.7% to 39.6% despite aluminium near cycle highs. Single-source risks: triply via one JV partner (agreement unsigned as of Aug 2026); ICT electronics concentrated in China. China dependence is being deepened through ownership (WOS + JV), not reduced.

↓ Downstream — Who Depends On Stove Kraft

Top-5/top-10 customer shares are not disclosed. No single export customer can exceed ~10–15% of revenue. Walmart is likely the largest export account; "one of our largest customers" committed to 3x imports from India (Aug 2025). Receivable days ~25–28. In OEM, the output becomes retailer private-label SKUs.

Value-chain map

Aluminium/steel (LME) ─┐   Triply circles (China; JV Dec-26) ─┐
Pig iron/scrap ────────┼─► Foundry, sheet/circle ──────────────┼─► Harohalli 46-acre + Baddi:      ─► E-com/q-com ~32% ─┐
Plastics resin ────────┘   Electronics IGBT/ICs (China) ───────┤   press, cast, coat, mould,        ─► GT ~29% ──────────┤
Glass / coatings ─────────► Lids in-house; tops bought ─────────┘   PCB stuffing, assembly, test     ─► MT ~13% ──────────┼─► Indian households (South ~50%)
                                                                    Pigeon / Gilma / B&D (imported)  ─► Pigeon stores ~9% ┤   + commercial kitchens
                                                                    OEM white-label                  ─► FOB exports 10–15% ┴─► Walmart / UK retailer / IKEA

Competitive Position

Stove Kraft is No. 2 by FY26 revenue among listed kitchen pure-plays: TTK 43.9%, Stove Kraft 23.7%, Hawkins 18.5%, Butterfly 13.9% of a ₹6,777 Cr peer set. That is a share of the peer set, not of the market. Management claims the largest pressure-cooker volume share (Frost & Sullivan, IPO-era); Hawkins and TTK lead in value and premium. Induction is comparable in scale to TTK (~₹193 Cr vs ~₹250 Cr).

Peer table (FY26, ₹ Cr; prices 16 Oct 2026)

Stove Kraft EV/EBITDA: 16.2x on EV ₹2,982 Cr (debt-like incl. SLB). The market input's 15.8x uses EV ₹2,906 Cr; ex the ~₹4.9 Cr TTM net ECL write-backs it is ~16.2x. P/E premium: 66% to TTK (34.8x Screener) and 89% to Hawkins. Geojit's TTK 28.6x FY26 EV/EBITDA is not comparable.

Category vs TTK, Q1 FY27: TTK cookers ₹188→233 Cr (+23.9%) vs Stove Kraft +41.3% (likely share gain); TTK appliances +39.7%; TTK cookware +30.2% vs Stove Kraft non-stick +21.8% (lagged).

Industry size and trends

• Consumer durables ~11% CAGR to FY29 (CII-EY). Induction market ~US$763 mn (2025) → ~US$842 mn (2026) (Astute Analytica, unverified; South ~39%). A total cookware/appliance market figure was not retrieved.
• LPG to electric (2026 shock): India imports ~60% of its LPG. Delhi cylinder +₹60 to ~₹913, commercial +₹115, black market up to ₹3,000. Amazon India induction 20–30x (Reuters: >30-fold), Flipkart 3–4x, Croma ~3x. ~75% of buyers cited LPG fear (LocalCircles). TTK utilisation 70%→100%. Blinkit/Zepto/Instamart stocked out; Pigeon online sales 4x at peak.
• Premiumisation (triply, cast iron, air fryers, BLDC, infrared); channel shift to e-com/quick commerce/EBOs; aluminium ~US$3,500/t and rupee ~94; export rebound as US tariffs fall 50%→~18% while Red Sea routes still disrupt; GST cut (12%→5% on ~35% of the portfolio, 20 Aug 2025) and easing rates.

Porter's Five Forces

Structure: semi-consolidated at the top, fragmented underneath. Pressure cookers are a near-oligopoly (Hawkins, Prestige, Pigeon); small appliances and induction are fragmented and import-assembled. Moat: narrow, moderately durable. Sources: lowest-cost integration, South brand equity, exclusive retail, validated OEM credentials (Walmart since 2014, IKEA since 2024). Limits: value positioning, failed premium sub-brands (Gilma + B&D ~1% of sales; "Others" ₹77→₹20 Cr), 2.6% PAT margin, D&A of ₹79.5 Cr on ₹166 Cr EBITDA. TTK and Hawkins hold volumes through 5–8% hikes; Stove Kraft is cost-plus.

Strengths and weaknesses vs each peer

Risks & Red Flags

Specific red-flag review

Concall Highlights & Guidance

Guidance vs actual — credibility ledger

Pattern: reliable on balance-sheet items; over-promises on exports, IKEA, stores, margins and capex. Contradictions: (1) "97–98% in-house" vs job work. (2) "<30 days WC" vs 45. (3) "Debt-free" vs rising finance cost. (4) IKEA Q1 vs Q2. (5) ICT 30% vs 20%. (6) ICT "2x" vs "20% of revenue" reconciles only on a ~₹160–175 Cr FY26 base, giving FY27 ICT ~₹330–410 Cr. (7) "≤₹25 Cr capex" vs ₹111 Cr. (8) Cookers "largest by units" vs ~4% value growth in Q3.

24-month news log

What to watch in Q2 FY27

1. ICT sequential trajectory (~₹65–95 Cr/qtr implied).
2. Growth vs the ₹474.4 Cr base; ex-ICT ~13–14%.
3. First IKEA revenue (sixth window).
4. Exports vs +50% guide.
5. Other expenses vs 18% of sales; job work back in-house.
6. Store adds (~30/qtr needed).
7. FX and finance cost under the SLB/lease structure.
8. China JV investment size; capex vs ₹40–50 Cr.

Growth, Outlook & Valuation

Valuation

Current EV ~₹2,982 Cr (market cap 2,819 + debt-like 193 − cash 30). EV/EBITDA pre-Ind AS 116 ~19x; EV/Sales ~1.7x. EV/EBITDA is near its 3-year average because EBITDA grew and debt fell; P/E and P/B have re-rated. The stock is up from ~₹453 at FY26-end to ₹851 (+~88%). Dividends: ₹2.50 / 3.00 / 3.50 (payout 24–28%). No buybacks ever. Sensitivity: 1 pp of PAT margin on FY26 revenue ≈ ₹16 Cr ≈ ₹4.9 EPS [Est.]. Peer multiples: Tab 9.

Street View

Trendlyne consensus FY27: revenue +18.9%, profit +59.7%. Q1 FY27 EPS ₹5.20 vs ₹2.60 estimate (+100%); revenue ₹4.81 bn vs ₹4.09 bn (+17.6%). Q2 FY27 estimates: EPS ₹8.25, revenue ₹5.52 bn (~+16% YoY). Emkay's Q1 note: ex-induction ~+12% (its basis; ours is +13.6%), EBITDA margin 10.2%, adj. PAT ~₹171 mn (+64%), FY27E/FY28E EPS +9%/+5%, FY26–28E revenue/EBITDA/EPS CAGR 18%/24%/52%, ROCE >15%. Emkay named Stove Kraft a small-cap top pick for 2025 (2 Feb 2025, with Metropolis and Quess); the stock then fell to ~₹450.

Flows and holders (street lens)

FPIs rose 0.87%→4.03% (~1.05 mn shares, ~₹85–90 Cr) across 67 funds, all <1%. MFs: Bandhan ~₹88 Cr, Mahindra Manulife ~₹51 Cr; past holders Nippon and PGIM have exited. Retail count spiked to 59,006 at the Mar-26 lows and fell to 54,681 (individuals ≤₹2 L: 16.48%→15.58%). Kacholia first bought 5.77 lakh shares in the Mar-2022 quarter and held through a ~50% drawdown.

12-month price path: ~₹690–700 (Oct 2025) → ~₹570 (Dec 2025) → ₹516–570 (12–19 Mar 2026) → ~₹446 low (Mar–Apr) → ~₹620–700 (Jun) → ~₹775 (23 Aug) → ₹795 (12 Oct) → ₹851 (16 Oct). +~52% in 6 months, ~+43% YTD vs Sensex ~−15% (MarketsMojo: 1-yr +21.4% vs Sensex −11.3%). Synthesis: constructive on rating, neutral on price; "domestic out, foreign in"; sentiment crowded-bullish relative to coverage.

Scenarios (12–18 months)

Final Verdict

Overall: Neutral.

Sources

Merged and de-duplicated from the Sources lists of all six inputs (financials, business, governance, narrative, market, heard). All accessed 17 Oct 2026 unless noted. Gaps: the FY26 Annual Report was not read (BSE 403, NSE timeout); the NSE/BSE announcement feeds were not queried directly; web-search budgets ran out in every input.

Company filings and IR

Exchange and regulatory filings

Credit ratings

Financial databases and shareholding

Concall transcripts and summaries

Brokerage and consensus notes

News and media

Governance profiles

Peers

Industry, regulatory, social