ADVERTISEMENT

Stove Kraft Q2 Results Review - Healthy Topline Growth; 11% Ebitda Margin Guidance Maintained: Nirmal Bang

The management highlighted that demand remains resilient and it has guided for double-digit topline growth for FY23-FY24.

<div class="paragraphs"><p>Range of Stove Kraft Ltd.'s kitchen appliances. (Source: Company website)</p></div>
Range of Stove Kraft Ltd.'s kitchen appliances. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Nirmal Bang Report

Stove Kraft Ltd. reported Q2 FY23 revenue of Rs 4.06 billion, up 11.9% YoY (13.9% below our estimate).

Gross margin improved by 30 bps YoY to 32.5%. Ebitda stood at Rs 460 million, up 13.4% YoY. Ebitda margin expanded marginally by 10 bps YoY to 11.3%, above our estimate of 10.7%.

Consequently, the profit after tax improved by 13% YoY to Rs 259 million, but it was below our estimate of Rs 282 million. Stove Kraft added 6,605 retail outlets in Q2 FY23.

During Q2 FY23, e-commerce channel’s contribution stood 36%. The management highlighted that demand remains resilient and it has guided for double-digit topline growth for FY23-FY24 (with 10% volume growth guidance for H2 FY23).

The management has further maintained 11% Ebitda margin guidance for FY23. We continue to believe that Stove Kraft can outperform industry growth going forward, driven by distribution expansion, new product launches and exports.

Click on the attachment to read the full report:

Nirmal Bang Stove Kraft-2QFY23 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.