Stock jumps 8% after partnering with IKEA to expand its business in international markets

Shares of one of the leading brands for home & kitchen appliances in India surged nearly 8.6 percent on BSE to hit a new 52-week high at Rs. 973.25 on Thursday, after expanding its global footprint and strengthening its presence in international markets through a supply partnership with IKEA. 

With a market cap of Rs. 3,037.8 crores, at 03:03 p.m., the shares of Stove Kraft Limited were trading in the green at Rs. 919.1, up by nearly 2.6 percent, as against its previous closing price of Rs. 896.05. 

What’s the News? 

Stove Kraft Limited (SKL), through its latest regulatory filings with stock exchanges, announced that it has been selected by IKEA as a supply partner. 

As part of this partnership, Stove Kraft will develop a range of cookware to be sold through IKEA’s global network of stores starting in 2026. The manufacturing facility for this partnership is located in a 180,000 sq ft built-up area at its Harohalli campus. 

This development supports the company’s strategic objective of expanding its global footprint and strengthening its presence in international markets. The partnership with IKEA will also bring in global best practices in manufacturing and supply chain processes. 

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Financials: 

Stove Kraft reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 10 percent, rising from Rs. 379.8 crores in Q2 FY24 to Rs. 418.3 crores in Q2 FY25. 

Similarly, the company’s net profit increased from Rs. 16.5 crores to Rs. 16.7 crores over the same period, representing a marginal rise of around 1.2 percent YoY. 

EBITDA for Q2 FY25 increased by about 22.7 percent YoY to Rs. 49 crores, up from Rs. 40 crores in Q2 FY24, with the EBITDA margin rising from 10.5 percent to 11.7 percent. 

Stock Performance:

The stock has delivered positive returns of nearly 94 percent of returns in one year, as well as around 70 percent returns in the last six months. So far in 2024, the shares of Stove Kraft have given multibagger returns of about 102 percent. 

About the Company: 

Stove Kraft Limited (SKL) is engaged primarily in the business of manufacturing of pressure cookers, LPG stoves, non-stick cookware and trading of other kitchen and electrical appliances under the brand names Pigeon, Pigeon LED and Gilma. It also possesses a licensing agreement with Stanley Black & Decker on certain categories of appliances. 

The company is the 3rd largest market share (12.4%) by volume in Non Stick Cookware and is one of the dominant players for pressure cookers. SKL has well-equipped and backward integrated manufacturing facilities in Bengaluru (Karnataka) and Baddi (Himachal Pradesh). 

Written by Shivani Singh 

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