Shares of kitchen appliance companies surged sharply on Thursday, outperforming a broader market selloff, as investors rushed to price in a potential demand shift toward induction cooking amid a worsening LPG supply situation.
Butterfly Gandhimathi led the rally, jumping nearly 14% to an intraday high of Rs 674.20. Stove Kraft rose over 6% to Rs 525.75, while TTK Prestige gained around 4.5% to Rs 500. The sharp upmove came even as benchmark indices Sensex and Nifty fell more than 2.5%, underscoring strong stock-specific momentum.
The rally is being driven by companies with meaningful exposure to induction cooktops - a category increasingly seen as a substitute during periods of LPG shortage and price volatility. TTK Prestige and Stove Kraft derive roughly 10-12% of their revenues from induction products, while Butterfly Gandhimathi generates around 5-8%. While still a relatively small share of overall revenues, the segment is now being re-rated as a near-term growth lever.
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LPG Crisis in India Adds to Demand Tailwinds
The stock rally is closely tied to developments in the global energy market, which are now spilling over into India. Damage to key LNG infrastructure in the Middle East - including Qatar's Ras Laffan facility - has disrupted supply chains and triggered a spike in gas prices.
India, which meets nearly 62% of its LPG demand through imports, is particularly vulnerable. A large share of these imports passes through the Strait of Hormuz, where shipments have been disrupted amid escalating geopolitical tensions.
The impact is already visible on the ground. Domestic LPG prices have risen by around Rs 60 per cylinder, while commercial LPG prices have jumped over Rs 110. Supply shortages have been reported in cities such as Mumbai and Bengaluru, with restaurants cutting back operations or switching to limited menus due to fuel constraints.
Affordability and Accessibility Support Shift
Induction cooktops, typically priced between Rs 1,500 and Rs 7,000, are emerging as an accessible alternative, especially for urban consumers. The relatively low upfront cost and ease of use make them a practical substitute during periods of fuel disruption. This has strengthened the near-term demand outlook for appliance makers, particularly those already present in the category.
The sector already trades at elevated valuations - with stocks like TTK Prestige and Stove Kraft commanding premium multiples - but the current environment is prompting a reassessment. Investors appear willing to look beyond valuations in favour of earnings optionality from a demand pivot.
ALSO READ: LPG Crisis Pushes Kitchens To Electric Cooking, But Is It Really Cheaper?
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