Stove Kraft Limited — Investor Meet, 10-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** StoveKraft reported a consolidated revenue of 404.1 crore for Q3 FY25, reflecting an 11.7% increase year-on-year. Gross profit rose by 9% to 151.7 crore, while gross margins remained stable at 37.6%. EBITDA grew 34.7% to 40.5 crore, resulting in an EBITDA margin improvement of 170 basis points to 10%. Profit after tax surged by 79.7%, reaching 12.1 crore, with an increased PAT margin of 3%, up from 1.9% in the previous year.

**Future Outlook and Growth Drivers:** Management highlighted a strategic partnership with IKEA to supply cookware, expected to begin contributing from FY26. The company is also enhancing its manufacturing capabilities with a new 1.8 lakh square feet facility. The launch of new personal care products aims to tap into the growing e-commerce segment, adding to the product diversity.

**Order Book and Operational Updates:** The recently commissioned cast iron foundries have commenced production, allowing for a diverse range of products. With a robust channel mix—39% general trade, 34% e-commerce—the company is well-positioned for continued growth.

**Analyst Q&A Insights (Detailed):** Analysts queried growth trajectories post-festive seasons and profitability metrics. Management remains optimistic, pledging to outpace industry growth rates and improve EBITDA margins progressively. Concerns around gross margin compression were addressed, with seasonal customer offers acknowledged as temporary.

**Market or Regulatory Updates:** Management expects positive impacts from anticipated tax cuts and continued demand recovery.

**Strategic Focus Areas:** Ongoing investments in manufacturing efficiency and product diversification underscore management's commitment to innovation and expansion, particularly in international markets.

**Investor Insight:** Financial health appears solid, paired with a positive outlook driven by strategic partnerships and product launches. The combination of increasing revenue streams and operational efficiencies aligns with a 'buy' position for prospective investors.