Stove Kraft Limited — PPTs, 22-05-2025: Investor Presentation

1. Financial Highlights:

Stove Kraft reported Q4 revenues of ₹313 Cr, down 3.8% YoY, with gross profit steady at ₹120.8 Cr and gross margin improving to 38.6%. EBITDA jumped 18.8% YoY to ₹29.5 Cr thanks to better operational efficiency, but PAT fell 45.5% to ₹1.5 Cr, impacted by higher lease depreciation and finance costs. For FY25, revenues rose 6.3% to ₹1449.8 Cr, gross profit grew 9.6% to ₹552.5 Cr, and EBITDA surged 26.8% to ₹150.7 Cr. PAT increased 12.8% to ₹38.5 Cr. Return ratios improved with ROCE at 16.4% and ROE at 10.9%. Inventory days rose to 144 due to new launches and weak Q4 demand, while receivable days improved to 33. Net working capital stands at 64 days with ongoing efforts to reduce it.

2. Strategic Initiatives & Growth Drivers:

The company added 32 exclusive Pigeon retail stores in Q4, taking the total to 262 across 20 states. E-commerce revenue grew 20%, while retail channel revenue surged 93% YoY. New launches include cast iron cookware targeting health-conscious buyers and a grooming range featuring BLDC hair dryers and men’s trimmers aimed at urban millennials. Quick commerce partnerships are expanding distribution reach to accelerate penetration.

3. Business Developments:

Stove Kraft expanded retail operations into 3 new states and 18 new cities. Portfolio diversification advanced with forays into personal care and grooming categories. Digital and outdoor marketing efforts intensified, focusing on product education and brand visibility for cast iron cookware and grooming segments.

4. Market Position & Competitive Advantage:

The company enjoys a stronghold in cooking appliances, with a leading position in free-standing hobs and cooktops and a 12.4% volume share in non-stick cookware, particularly in South India. Its backward-integrated manufacturing units in Bengaluru and Baddi ensure quality and innovation. The Gilma modular kitchen brand adds differentiation through franchise operations. A professional management team under founder Rajendra Gandhi underpins execution and innovation.

5. Investor Implications:

Steady revenue growth, margin improvement, and better returns signal positive growth potential fueled by innovation and retail expansion. However, the Q4 PAT decline from lease accounting demands monitoring execution nuances. Strong omni-channel presence and category diversification mitigate risk, but working capital and expansion costs warrant attention. Focus on premiumization, health trends, and new categories position Stove Kraft well in the consumer durables space.