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Stove Kraft
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Stove Kraft Limited was incorporated as Stove Kraft Private Limited on June 28, 1999 at Bengaluru, Karnataka, India as a private limited company and commenced its business on June 28, 1999. Subsequently, the company was converted into a public limited company pursuant to a special resolution passed by the shareholders at the EGM on May 28, 2018, and the name of the Company was changed from Stove Kraft Private Limited to Stove Kraft Limited on August 13, 2018.
The Company is a kitchen solutions and an emerging home solutions brand. Further, It is one of the leading brands for kitchen appliances in India, and are one of the dominant players for pressure cookers and amongst the market leaders in the sale of free standing hobs and cooktops. It is engaged in the manufacture and retail of a wide and diverse suite of kitchen solutions under its Pigeon and Gilma brands, and propose to commence manufacturing of kitchen solutions under the BLACK + DECKER brand, covering the entire range of value, semi-premium and premium kitchen solutions, respectively. The Company's kitchen solutions comprise of cookware and cooking appliances across its brands, and its home solutions comprise various household utilities, including consumer lighting, which not only enables it to be a one stop shop for kitchen and home solutions, but also offer products at different pricing points to meet diverse customer requirements and aspirations.
The Company's flagship brands, Pigeon and Gilma, have enjoyed a market presence of over 15 years and enjoy a high brand recall amongst customers for quality and value for money. Pigeon has been listed as one of the 'India's Most Admired Brands 2016' by White Page International. As a result of its co-branding initiatives over eight years with LPG companies such as Indian Oil Corporation Limited and Hindustan Petroleum Corporation Limited to utilize their sale and distribution channels, its Pigeon brand has enjoyed a wide customer outreach and continues to have a high brand recall value. The Company manufactures and retails a wide and diverse range of affordable (value segment), quality products under its Pigeon brand, including, inter alia, cookware, cooking appliances and household utilities (including consumer lighting). The Company currently offers a wide range of products such as chimney, hobs and cooktops under the Gilma brand, which is targeted at the semi-premium segment.
The Company has a separate distribution network for each of its Pigeon, Gilma and BLACK + DECKER brands. Further, there is a separate distribution network for the Pigeon LED products. As of September 30, 2020, its manufacturing facilities in Bengaluru and Baddi are well connected with nine strategically located C&F agents. Additionally, the company has 651 distributors in 27 states and five union territories of India and 12 distributors for its products that are exported as of September 30, 2020. As of September 30, 2020, the C&F agents and distributors are, in turn, connected with a dealer network comprising of over 45,475 retail outlets, which are driven through a sales force of 566 personnel. The Company has entered into commercial arrangements with retail chains such as Metro Cash And Carry India Private Limited for the sale of its Pigeon branded products from several of their retail outlets in India. Further, It has also entered into agreements with e-commerce platforms such as Flipkart India Private Limited for the sale of its products on their portals. Outside of India, the company exports its products which are manufactured by it to retail chains in the United States of America and Mexico.
The Company's Gilma brand products are sold through exclusively branded outlets owned and operated by franchisees. As of September 30, 2020, there were 65 such stores spread across four states and 28 cities and towns, with a presence in the urban market in south India. Gilma stores are designed to be experience' stores.
The Company was founded by its Promoter, Rajendra Gandhi, a first generation entrepreneur with over 21 years of experience in the kitchen appliances industry. The Company believes that the sector-specific experience and expertise of its senior management has contributed significantly in the growth of the Company.
Stove Kraft share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Stove Kraft indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Stove Kraft is valued compared to its competitors.
Stove Kraft PE ratio helps investors understand what is the market value of each stock compared to Stove Kraft 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Stove Kraft evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Stove Kraft generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Stove Kraft in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Stove Kraft shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Stove Kraft compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Stove Kraft over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Stove Kraft helps investors get an insight into when they can enter or exit the stock. Key components of Stove Kraft Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Stove Kraft shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Stove Kraft ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Stove Kraft provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Stove Kraft highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Stove Kraft .
The balance sheet presents a snapshot of Stove Kraft ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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