Butterfly Gandhimathi, TTK Prestige, Stove Kraft shares rally up to 17% today; here's why

Shares of cooktops, electric cooker and hot plate makers such as Butterfly Gandhimathi Appliances Ltd, TTK Prestige Ltd and Stove Kraft Ltd, continued with their recent strong momentum, surging up to 17 per cent in Monday's trade on hopes demand will surge amid LPG supply disruptions. The stocks gained as inductions and electric cooking appliances got 'sold out' on quick commerce platforms, hiting at panic buying among consumers.   

Butterfly Gandhimathi Appliances Ltd surged 17 per cent to Rs 710. Stove Kraft Ltd soared 16.34 per cent to Rs 567.55 but trimmed gains as the session progressed. It was trading 9.75 per cent higher at Rs 535.35 at the fag-end of the trading. TTK Prestige also climbed 14.63 per cent to Rs 556. It was later quoting at Rs 531.35, still up 9.56 per cent, amid strong buying of induction and electric cooking appliances on quick commerce platforms.

A report by ET quoting industry executives said quick commerce platforms saw a spike in the sale of induction cooktops, as panic buying set in over fears that gas supplies might run out. “We have seen a 10x spike in induction (cooktop) sales today compared to business-as-usual,” it quoted an executive from Instamart as saying. 

This is even as the government said supplies to domestic piped natural gas (PNG), compressed natural gas (CNG) for transport, LPG production and essential pipeline operations will be maintained at 100 percent of their average gas consumption over the past six months, subject to operational availability.

"On the heels of the price volatility and looming supply shortages, measures are underway domestically to balance the available stock, including prioritising household gas use while industrial consumers face potential delays/ disruptions," said DBS Bank's Radhika Rao.

(More to come)