Stove Kraft (STOVEKRAFT)
TurnaroundFairStock Score: 29/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹750.7 |
| Market Cap | ₹2,485.37 Cr |
| P/E Ratio | 51.03 |
| ROCE | 10.96% |
| ROE | 8.19% |
| Dividend Yield | 0.45% |
| Profit Growth | 63.5% |
| Debt/Equity | 0.23 |
| Sales Growth | 41.3% |
| Promoter Holding | 55.79% |
| 52-Week Range | ₹447.05 — ₹876.6 |
| Sector | Consumer Durables |
| Book Value | ₹152.5 |
Strengths
- Promoter holding of 55.79% shows alignment and skin in the game.
- Debt/Equity of 0.53 is manageable and not a sign of severe financial stress.
- Latest quarter still shows absolute profitability: ₹4 Cr net profit on ₹378 Cr sales.
- ROCE of 10.96% is higher than ROE, indicating some operating return before leverage.
Concerns
- P/E of 43.16 with profit growth of -65.82% means paying a rich premium for collapsing earnings.
- Sales growth of -6.36% and a net margin near 1% indicate weak demand and pricing power.
- Piotroski F-Score of 3/9 and FairStock Score of 0/100 point to poor financial health.
- ROE of 8.19% with P/B of 3.93 offers poor value for the multiple paid.
AI Analysis
At ₹549.25, Stove Kraft carries a market cap of ₹1,614 Cr. I start with the price: a P/E of 43.16 after profit fell 65.82% makes no sense to me unless the business is about to dramatically recover. Graham taught me not to pay for hope. The latest quarter shows why: ₹378 Cr sales produced just ₹4 Cr net profit—roughly 1% margin. That is a very weak business result, not a compounding machine. Sales are down 6.36%, so the operating environment is not helping either. ROE is only 8.19%, and with a P/B of 3.93 I am paying nearly four times book for returns that an index fund could perhaps match. ROCE at 10.96% is better, but still not outstanding. The Piotroski F-Score of 3/9 and FairStock Score of 0/100 reinforce my caution: financial health is deteriorating. On the positive side, promoter holding of 55.79% aligns owners with shareholders, and debt/equity of 0.53 is manageable. The dividend yield of 0.62% is negligible compensation for the risk. So is this a value stock? No. It is an operationally weak business at an unforgiving valuation. I would want to see sales stabilising, profit margins recovering to respectable levels, and the F-Score improving before I even think about buying. Until then, this sits in the too-hard pile. In investing, avoiding permanent loss matters more than missing a bounce.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer