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Stove Kraft share jumps 16% to close at Rs 445.95 on listing day

In terms of volumes, Stove Kraft traded with 9,60,564 equity shares on the BSE and 1,07,55,080 equity shares on the NSE.

February 05, 2021 / 05:23 PM IST
 
 
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Stove Kraft shares closed strong though they failed to hold on to their opening level on their stock market debut on February 5. The stock rallied 15.83 percent to close at Rs 445.95 on the BSE as well as National Stock Exchange after opening at Rs 467 and Rs 498 (which was also an intraday high), respectively.

The share price touched an intraday high of Rs 495.55 and a low of Rs 435.05 on the BSE, while the intraday low was Rs 435 on the NSE.

In terms of volumes, Stove Kraft traded with 9,60,564 equity shares on the BSE and 1,07,55,080 equity shares on the NSE.

"We are cautious about its valuation. The company's brand value, margins and return on capital are lower than its peers. Any increase in raw material prices will have a significant impact on the bottomline," Keshav Lahoti, Associate Equity Analyst at Angel Broking said.

Stove Kraft share price climbs 29% intraday on listing day: What should investors do?

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"The company also did not have a good track record of profitability. Cost reduced in the first half of FY21 due to COVID-19 such as travelling, advertisement is going to come back once business comes back to normalcy. So the first half of FY21 margins are not sustainable," he added.

Stove Kraft, which manufactures and sells kitchen solutions under the brand names Pigeon and Gilma and is planning to manufacture value, premium, and semi-premium kitchen supplies under the Black + Decker brand, mopped up Rs 413 crore through public issue. The fresh issue proceeds will be utilised for debt repayment.

Stove Kraft has two  backward integrated manufacturing facilities in Bengaluru and Baddi, with dedicated plants for each of their core product categories - LPG cooktops, aluminium pressure cookers, non-stick cookware, induction cooktops and mixer grinders.
Moneycontrol News
first published: Feb 5, 2021 05:23 pm

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