Stove Kraft shares gain 16% on debut after touching high of Rs 496

Close at Rs 456; stock currently trades at about 25x its estimated earnings for FY21-similar to Butterfly Gandhimati but almost half that of TTK Prestige

Shares of kitchen appliances maker Stove Kraft gained 16 per cent on Friday, the day of its trading debut. The stock closed the session at Rs 456, registering a gain of Rs 61, or 16 per cent, over its listing price of Rs 385. 

It touched a high of Rs 496 and low of Rs 435. At the closing price, the company had a market capitalisation of Rs 1,451 crore.

The stock is currently trading at close to 25x its estimated earnings for FY21 — similar to that of Butterfly Gandhimati but almost half that of TTK Prestige.

“Notably, peers enjoy a stronger balance sheet and proven earnings record, compared to Stove Kraft. Despite being in operation for more than two decades and having set up a strong distribution network, Stove Kraft has not delivered up to the mark. While the sharp improvement in earnings during H1FY21 bodes well, we are not certain about the sustainability of the same,” Reliance Securities had said in a note last month.

The Stove Kraft offering, which had closed on January 28, had garnered 18x subscription. The company owns brands such as Pigeon, Gilma, and Black & Decker. It  raised Rs 95 crore in fresh capital through the initial public offering.