Stove Kraft's Q2 FY25 financials show positive growth, receives 'Hold' call from MarketsMOJO

Stove Kraft, a smallcap consumer durables company, has recently declared its financial results for the quarter ending September 2024. The company has received a ‘Hold’ call from MarketsMOJO, a leading financial analysis platform.

According to the financials, Stove Kraft has shown positive performance in the second quarter of FY24-25. The company’s score has improved from 2 to 15 in the last three months. This is a significant improvement and indicates a positive trend for the company.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax less Other Income (PBT) and Profit After Tax (PAT). In the last quarter, PBT has grown by 106.4% and PAT has grown by 95.8% compared to the average of the previous four quarters. This shows a strong upward trend in the company’s profitability.

Stove Kraft has also shown a strong operating cash flow, with the highest amount of Rs 112.58 crore in the last three years. This indicates that the company is generating higher revenues from its business operations.

In terms of sales, Stove Kraft has also shown a positive trend with the highest net sales of Rs 418.31 crore in the last five quarters. This is a growth of 21.2% compared to the average of the previous four quarters. The company’s operating profit and profit margin have also shown improvement, indicating increased efficiency.

On the other hand, the company’s interest cost has increased by 17.71% in the last quarter, which may be a cause for concern. The debt-equity ratio has also reached its highest level in the last five half-yearly periods, indicating increased borrowing by the company.

Overall, Stove Kraft has shown a positive financial performance in the last quarter, with strong growth in key areas such as PBT, PAT, and sales. However, the increase in interest cost and debt-equity ratio may be areas of concern for investors. MarketsMOJO has given a ‘Hold’ call for the company’s stock, indicating a neutral stance.