Stove Kraft shares down 33% in 6 months; worth a buy?
Nirmal Bang, which hosted the company MD & Promoter Rajendra Gandhi said the Pigeon brand owner expects 15-18 per cent revenue growth and aims to expand gross margins to 40-45 per cent over the next 2–3 years.
- Mar 18, 2026,
- Updated Mar 18, 2026 8:53 AM IST
After rallying for two days on hopes of increased demand amid LPG shortage, shares of kitchen solutions provider Stove Kraft Ltd dropped for four straight sessions, taking their six-month fall to 33 per cent.
Nirmal Bang Institutional Equities, which hosted the company MD & Promoter Rajendra Gandhi said the Pigeon brand owner expects 15-18 per cent revenue growth and aims to expand gross margins to 40-45 per cent over the next 2–3 years, supported by premiumisation and an improved product mix. That said, March is typically a seasonally softer quarter for the business.
Nirmal Bang said the Stove Kraft management’s strategy to cater to the mass segment by offering branded products at reasonable price points, while sustaining over 10 per cent Ebitda margins, along with strong traction in newer higher-margin categories such as air fryers, provides comfort on delivery of both topline growth and margin guidance over the short-to-medium term.
That said the brokerage remained cautious in the near term, given the evolving geopolitical situation, which could impact exports for the quarter. To factor in the near-term pressure, Nirmal Bang values the stock at 21 times December 2027E earnings. It maintained 'Buy' on Stove Kraft with a revised target price of Rs 626, implying a 55 per cent discount to the 5-year historical average P/E on a 1-year forward basis.
Margins could see 1–1.5 per cent pressure in the near term due to volatility in aluminium, copper, and currency movements, given the lag in passing on price increases, it said.
"Over the next three to four years, the company expects its channel mix to evolve further with e-commerce contributing 37–38 per cent of revenues, general trade around 30 per cent, exports about 20 per cent, modern trade at 12-13 per cent, and own retail (EBOs) at a minimum of 10 per cent, reflecting a more balanced omnichannel distribution strategy," Nirmal Bang said.
Nirmal Bang said cookware is a key component of Stove Kraft's export strategy through its long-standing partnership with IKEA, where initial supplies are expected to reach around 9,00,000 pieces annually with a second product line under development that could scale to nearly 1.5 million units.
After rallying for two days on hopes of increased demand amid LPG shortage, shares of kitchen solutions provider Stove Kraft Ltd dropped for four straight sessions, taking their six-month fall to 33 per cent.
Nirmal Bang Institutional Equities, which hosted the company MD & Promoter Rajendra Gandhi said the Pigeon brand owner expects 15-18 per cent revenue growth and aims to expand gross margins to 40-45 per cent over the next 2–3 years, supported by premiumisation and an improved product mix. That said, March is typically a seasonally softer quarter for the business.
Nirmal Bang said the Stove Kraft management’s strategy to cater to the mass segment by offering branded products at reasonable price points, while sustaining over 10 per cent Ebitda margins, along with strong traction in newer higher-margin categories such as air fryers, provides comfort on delivery of both topline growth and margin guidance over the short-to-medium term.
That said the brokerage remained cautious in the near term, given the evolving geopolitical situation, which could impact exports for the quarter. To factor in the near-term pressure, Nirmal Bang values the stock at 21 times December 2027E earnings. It maintained 'Buy' on Stove Kraft with a revised target price of Rs 626, implying a 55 per cent discount to the 5-year historical average P/E on a 1-year forward basis.
Margins could see 1–1.5 per cent pressure in the near term due to volatility in aluminium, copper, and currency movements, given the lag in passing on price increases, it said.
"Over the next three to four years, the company expects its channel mix to evolve further with e-commerce contributing 37–38 per cent of revenues, general trade around 30 per cent, exports about 20 per cent, modern trade at 12-13 per cent, and own retail (EBOs) at a minimum of 10 per cent, reflecting a more balanced omnichannel distribution strategy," Nirmal Bang said.
Nirmal Bang said cookware is a key component of Stove Kraft's export strategy through its long-standing partnership with IKEA, where initial supplies are expected to reach around 9,00,000 pieces annually with a second product line under development that could scale to nearly 1.5 million units.