Stove Kraft jumps 7%, hits 52-week high on Emkay Global's 'buy' coverage

o far this year, shares of Stove Kraft more than doubled or surged over 103 percent

Shares of Stove Kraft surged 7 percent to a 52-week high of Rs 932 on September 16 after Emkay Global initiated a 'buy' rating with a target price of Rs 1,350. Analysts are optimistic, citing the stock’s attractive valuations and the company’s strong innovation and 'value for money' positioning.

Stove Kraft manufactures cooking appliances under Skava, Pigeon and Gilma brands. The Bengaluru-based company's cooking appliances include mixer grinders, pressure cookers, cooktops, toasters, chimneys and kitchen utensils.

Emkay Global finds Stove Kraft valuations attractive amid strong market share gains at 35 percent EPS CAGR along with robust free cash flows. Furthermore, the brokerage firm believes that the company has been improving distribution expansion, including new-age channels such as e-com and modern retail.

ALSO READ: Stove Kraft Standalone June 2024 Net Sales at Rs 314.45 crore, up 5.61% Y-o-Y

"It has emerged as the leader in several high-growth categories, along with rapidly improving exports positioning (largest exporter; supplies to Walmart). Potential mass-consumer demand cycle recovering after 2 tough years and Stove Kraft's sharply enhanced manufacturing edge will drive 15 per cent/33 per cent revenue/EPS CAGR over FY24-27E, with strong free cash flow yield of 5.6 per cent," Emkay Global added.

Stove Kraft has sharply outperformed peers -- 15 percentage points revenue share gains over FY16-24, driven by improvement in categories like non-stick cookware, pressure cookers, and other small appliance. The company has also emerged as the market leader in products like induction cooktops, air fryers, and electric kettles despite being only a recent entrant here .

So far this year, shares of Stove Kraft more than doubled or surged over 103 percent, beating benchmark Nifty 50's 15 percent surge.

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