Stove Kraft Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Stove Kraft Ltd trades at ₹815, in a confirmed uptrend and 13 weeks into that stage. That is +20.3% against its own 200-day average. It sits at 95% of a 52-week range of ₹476 to ₹833. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 25 straight weeks.

Today the stock is in a confirmed uptrend — week 13 of stage 2, confirmed. At ₹815 it trades +20.3% versus its 200-day average and sits at 95% of its 52-week range (₹476–₹833).

Against the market, two honest reads. Cumulative: over the last 5.6 years the stock moved +83% while the NIFTY 500 moved +84% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 25 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Stove Kraft Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_EXPANSION. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Stove Kraft has operating catalysts from IKEA, induction and franchise expansion, but it is a PEAK_MARGIN_VALUE_TRAP at the current valuation: normalized mid-cycle earnings imply a higher PE, so execution must offset margin mean-reversion risk.

What is proven. Stove Kraft has operating catalysts from IKEA, induction and franchise expansion, but it is a PEAK_MARGIN_VALUE_TRAP at the current valuation: normalized mid-cycle earnings imply a higher PE, so execution must offset margin mean-reversion risk.

What is not proven yet. A failure of quarterly operating profit margin to remain near or above the 9.5% normalized level combined with IKEA revenue contribution remaining below 25 Cr for full-year FY27, indicating that operating leverage and export diversification are not offsetting domestic category normalization.

🚨 What would change our mind. A failure of quarterly operating profit margin to remain near or above the 9.5% normalized level combined with IKEA revenue contribution remaining below 25 Cr for full-year FY27, indicating that operating leverage and export diversification are not offsetting domestic category normalization.

Layer 1 read, 22 August 2026 — KEEP. Sales and profit finally accelerating while the share price sits still — but capital still earns only 11%. June-quarter sales rose 41.5% to 481 crore and profit 70% to 17 crore, driven by induction cooktops up more than four-fold, pressure cookers up over 40%, and a GST cut that dropped shelf prices from 12% to 5% tax - and unusually, the shares are up only 16% over the year and sit 29% below their high, so the valuation has been falling while the earnings rose. The catch is that this growth is not making the company better: return on capital has been stuck at 11% for three straight years, down from 32% in 2021, so at 52.8 times earnings you are paying a premium price for a business that has not yet proved it compounds. Management has also missed its own margin and export targets this year and…

What would change Layer 1’s mind. IKEA revenue coming in below 8 Cr in Q2 FY27 - the timeline's own milestone M1, and the first real test after the supply start already slipped one quarter - combined with quarterly operating margin failing to hold at or above the 9.5% normalised level. Sharpened at my level: because return on capital has been pinned at 11% for three years, the single observation that would flip this from P2 to DROP is a second consecutive quarter of operating margin below 10% while revenue growth decelerates…

Layer 2 read, 22 August 2026 — BENCH. Stove Kraft's sales turn is real, but the sector evidence is too mixed to promote it. The sector fallback shows a latest-quarter recovery in sales, profit and operating margin, but its full-year profit and margin still fell. Stove Kraft's own induction and cooker demand supports the company turn, while the model warns that normalized earnings make the PE higher, not cheaper [C003,C022; ⚠ model]. With the external capital-cycle row still at CAPACITY_RISK, BENCH is the honest P2 outcome.

What would change Layer 2’s mind. Move BENCH to ADVANCE when the next sector refresh changes combined_read from CAPACITY_RISK to NEUTRAL or IDEAL_TROUGH_SETUP after another broad profit-and-margin improvement.

The test written in advance. A failure of quarterly operating profit margin to remain near or above the 9.5% normalized level combined with IKEA revenue contribution remaining below 25 Cr for full-year FY27, indicating that operating leverage and export diversification are not offsetting domestic category normalization. — the thesis as written as stated by the next result.

The test written in advance. Peak Margin Multiple Mean-Reversion Risk — Peak Margin Multiple Mean-Reversion Risk Reported quarterly OPM falls below 10.0% in two consecutive quarters or the normalized margin trend deteriorates. by the next result.

The test written in advance. China Sourcing Vulnerability for Crystalline Glass — China Sourcing Vulnerability for Crystalline Glass Material component-shipping delays or induction-line gross-margin contraction. by the next result.

What the company does. Management guided FY27 capex at 40 Cr after describing FY26 gross investment of 111 Cr for the IKEA facility; the standardized FY26 cash-flow capex cell is 28 Cr, so these measures should not be treated as directly comparable. Q1 FY27 revenue rose 41.47% YoY to 481 Cr and operating profit was 54 Cr; the quarterly-results table reports OPM of 11%. FY26 OCF was 258 Cr and the cash conversion cycle was 27 days, but the improvement included payable-day expansion to 133 days; cash conversion should be monitored rather than extrapolated mechanically.

🚨 What the surface reading misses. The surface reading is: Trailing PE is 52.8x. The research reads it further: The normalized model treats current OPM of 11.2% as above its 9.5% normalized level and therefore produces a higher normalized PE.

🚨 What the surface reading misses. The surface reading is: Q1 operating profit increased with revenue. The research reads it further: The normalized model does not assume the Q1 margin is permanent.

Lever 1 · Operating leverage — BUILDING. Backward integration provides cost control across an installed footprint management estimates can support 2,500-3,000 Cr of peak revenue. What proves it keeps working: Operating Leverage via 97-98% In-House Integration. It stops working if Volume throughput weakens materially or input-cost inflation cannot be passed through.

Lever 2 · Value-added mix — BUILDING. Stainless-steel mix and planned tri-ply and automated pressure-cooker lines could improve realization, but the 40-42% gross-margin target remains guidance. What proves it keeps working: Cookware Premiumization to Stainless Steel & Tri-Ply. It stops working if Consumer demand shifts back toward lower-ASP aluminium cookware.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Stove Kraft Ltd reported ₹481 Cr of revenue in the Jun 26 quarter, +41.5% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 17.1% a year. The last full year, FY26, came in at ₹1,605 Cr. The last four reported quarters add to ₹1,748 Cr.

Why this happened. The November call described a GST rate reduction on cookware and pressure cookers, representing 35% of portfolio, from 12% to 5%. The August call reported induction cooktop growth of 315.9% YoY and management targeted at least 20% of FY27 revenue from induction. China-sourced crystalline glass remains a supply constraint.

FY26 revenue came in at ₹1,605 Cr (+10.8% on the year), capping 10 years at 17.1% compound. The latest quarter (Jun 26) printed ₹481 Cr, +41.5% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +20.3% growth against the decade's 17.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +18.5% over the last 4 quarters against +12.5%/yr over the last 8 — accelerating; TTM profit +20.0% vs +17.1%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Stove Kraft Ltd's operating margin is 11.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −6.0% to 13.0%. The current quarter sits inside that band.

Why this happened. Stove Kraft states that 97-98% of production is in-house across cookware, induction cooktops and small appliances. Management estimated existing-footprint peak revenue of 2,500-3,000 Cr. Incremental volume can absorb fixed costs, but the current deterministic margin-normalization model still uses 9.5% OPM and does not assume that the recent margin is permanent.

The latest quarter's operating margin is 11.0%, +1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −6.0%–13.0%.

Why the margin moved: operating margin went +0.7 pp year on year while gross margin went +1.3 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Stove Kraft Ltd earned ₹17.0 Cr of net profit in the Jun 26 quarter, +70.0% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹42.0 Cr. That is 3.5% of the quarter's revenue. The same quarter a year earlier earned ₹10.0 Cr.

Jun 26 profit was ₹17.0 Cr, +70.0% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹42.0 Cr (+7.7%).

Why profit moved: revenue contributed +41.5% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +131.7% vs revenue +20.3%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 436% of Stove Kraft Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹258 Cr of operating cash against ₹42.0 Cr of profit. After ₹28.0 Cr of capital spending, ₹230 Cr was left as free cash.

FY26: operating cash of ₹258 Cr against reported profit of ₹42.0 Cr, leaving free cash of ₹230 Cr after ₹28.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 436% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 436%: the cash cycle tightened 11 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.9× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Stove Kraft Ltd's cash conversion cycle runs 27 days in FY26, down from 38 days in FY21. Capital spending ran ₹386 Cr over the last 3 years. At FY26 sales of ₹1,605 Cr each day of that cycle holds about ₹4.4 Cr, so roughly ₹119 Cr sits inside the business at any moment.

Why this happened. The IKEA facility was capitalized as of March 2026 across three awarded product lines. The August 2026 call states supplies did not start in the reported Q1 and instead started in Q2. Management's May guidance was 40-50 Cr of FY27 revenue and 200-250 Cr annual revenue at full utilization. Management described FY26 gross investment of 111 Cr and guided FY27 capex at 40 Cr, while the deterministic cash-flow table reports FY26 cash capex of 28 Cr; these are not directly comparable without a definition bridge.

FY26: debtors at 26 days, inventory at 133 days — roughly 4.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 27 days, tighter than FY21's 38.

The full loop: cash goes out to suppliers and production on day 0; stock waits 133 days to sell; customers pay about 26 days after that; and suppliers themselves are paid at 133 days — netting out to the 27-day cycle.

In money terms: at FY26 sales of ₹1,605 Cr, each day of the cycle holds about ₹4.4 Cr — so the 27-day loop keeps roughly ₹119 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹386 Cr over the last 3 fiscal years against ₹200 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹15.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Stove Kraft Ltd earns a ROCE of 11% in FY26. That is up from a trough of −13% in FY16. Return on invested capital clears the cost of that capital by +0.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 2.6% net margin on 1.37× asset turns.

FY26 ROCE is 11%, recovered from a FY16 trough of −13% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 2.6% net margin × 1.37× asset turns × 2.33× balance-sheet leverage ≈ 8.3% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 12.6% − 12.0% = a +0.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Stove Kraft Ltd carries total debt of ₹117 Cr against shareholder equity of ₹504 Cr as of Mar 26, a debt-to-equity of 0.23 — effectively unlevered. On the annual view that ratio went from 0.43 in FY22 to 0.23 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹117 Cr against shareholder equity of ₹504 Cr — a debt-to-equity of 0.23. On the annual view, debt-to-equity went from 0.43 (FY22) to 0.23 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 2.4 points of Stove Kraft Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 7.1% of the company. Foreign institutions moved +0.3 points over the same window, to 1.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +2.4 points over 8 quarters to 7.1%; Foreign institutions: +0.3 points over 8 quarters to 1.2%; Promoters: −0.1 points over 8 quarters to 55.8%.

Why the register moved: domestic institutions drove it (+2.4 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Stove Kraft Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Stove Kraft Ltd trades at 55.5× P/E, at the pricey end of its own range (71st percentile). Its long-run median P/E is 46.9×, measured across 5.1 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 55.5× is at the pricey end of its own range (71st percentile), against a long-run median of 46.9× measured over 5.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +8.9% against a +21.1% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the −3.4%/yr price move, ~−15.7%/yr came from earnings growth and ~+12.3 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Stove Kraft Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 12.2% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

51.4/100 — rank 4 of 6 in Domestic Appliances · 94% evidence confidence

Stove Kraft Ltd scores 51.4 out of 100 against the 6 companies it is compared with in Domestic Appliances, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 23.6 + 10.8 + 2.3 + 14.7 = 51.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Stove Kraft Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 IKEA Revenue Start Delayed · 4 August 2026. Both the January 2026 and May 2026 calls indicated that IKEA production or revenue recognition would begin in Q1 FY27. In the August 2026 call, management said supplies had not started in the reported quarter and instead began in Q2, representing a one-quarter delay to a repeatedly stated milestone without explaining the slippage.

🚨 EBITDA Margin Guidance Miss · 13 May 2026. In both the Nov 2025 and Jan 2026 calls, management unambiguously guided at least a 1 percentage point improvement in FY26 EBITDA margins over FY25 levels of approximately 10.4%, implying a target of roughly 11.4%. The May 2026 call disclosed full-year FY26 EBITDA margin at 10.3%, essentially flat to slightly below FY25 and approximately 110 basis points short of the guided level. Management attributed the shortfall to a one-off forex loss in Q4, a risk that was never flagged in either prior call despite both reconfirming the guidance with explicit confidence.

Export 50% Growth Target Abandoned · 13 May 2026. In the Nov 2025 call, management explicitly maintained a 50% export growth guidance, stating it would be upheld once tariffs stabilized and projecting the same 50% growth rate for FY27. In the May 2026 call, management acknowledges US tariffs have substantially decreased from approximately 50% to 18%, which was the exact stated precondition for maintaining the 50% growth target. Despite this improvement in the tariff environment, management now only guides for gradual export growth, entirely abandoning the 50% target without acknowledgment or explanation.

Retail Real Estate Strategy Reversal · 13 May 2026. The Nov 2025 call explicitly stated that controlling real estate was a core strategic objective and that the COFO model - where the company owns the lease - was the right and preferred model for all future store additions, with confirmation that all incremental stores were being opened on that basis. The May 2026 call directly contradicts this by stating all future stores will follow FOFO or FOCO formats where the franchise owns the real estate, representing a fundamental and unexplained shift in retail capital allocation strategy and balance sheet composition.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions