Rating Overview and Context
On 01 December 2025, MarketsMOJO revised Stove Kraft Ltd’s rating from Hold to Sell, reflecting a significant change in the company’s outlook. The Mojo Score, a composite indicator of the stock’s overall quality and potential, declined by 17 points from 54 to 37. This adjustment signals a cautious stance towards the stock, advising investors to consider reducing exposure or avoiding new positions at current levels.
It is important to note that while the rating change occurred in early December 2025, the detailed analysis below is based on the most recent data available as of 16 February 2026. This ensures that investors receive a comprehensive and current assessment of Stove Kraft Ltd’s financial health and market standing.
Here’s How Stove Kraft Ltd Looks Today
As of 16 February 2026, Stove Kraft Ltd remains a small-cap company operating within the Electronics & Appliances sector. The company’s current Mojo Grade is Sell, supported by a Mojo Score of 37.0, which reflects a combination of factors including quality, valuation, financial trends, and technical indicators.
Quality Assessment
The company’s quality grade is assessed as average. Over the past five years, Stove Kraft Ltd has demonstrated modest growth in net sales, averaging an annual increase of 14.13%. However, operating profit growth has been notably subdued at just 1.34% annually, indicating challenges in converting sales growth into meaningful profitability improvements. This sluggish profit expansion suggests operational inefficiencies or margin pressures that investors should monitor closely.
Valuation Perspective
From a valuation standpoint, Stove Kraft Ltd is currently considered attractive. This suggests that the stock is trading at levels that may offer value relative to its earnings potential and sector peers. Despite this, valuation attractiveness alone does not offset concerns arising from other parameters, particularly the company’s financial trend and technical outlook.
Financial Trend Analysis
The financial grade is characterised as flat, reflecting a lack of significant improvement or deterioration in recent quarters. The latest quarterly results ending December 2025 reveal a challenging environment for the company. Profit Before Tax (PBT) excluding other income stood at ₹7.31 crores, marking a sharp decline of 47.9% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) dropped by 63.4% to ₹4.15 crores. Operating profit margin relative to net sales also hit a low of 9.06% in the quarter, underscoring margin pressures.
Technical Indicators
Technically, Stove Kraft Ltd is rated bearish. The stock has underperformed key benchmarks such as the BSE500 over multiple time frames. Specifically, it has delivered a negative return of 26.99% over the past year and declined 20.58% over the last three months. The downward momentum is further reflected in shorter-term returns: -0.07% on the latest trading day, -5.34% over one week, and -1.97% over one month. This technical weakness suggests limited near-term upside and increased risk of further declines.
Stock Returns and Market Performance
As of 16 February 2026, Stove Kraft Ltd’s stock performance has been disappointing. The one-year return stands at -26.99%, significantly underperforming the broader market indices. Year-to-date, the stock has declined by 10.64%, while the six-month return is down 13.94%. These figures highlight persistent challenges in regaining investor confidence and market traction.
Long-Term Growth and Profitability Challenges
Despite some growth in net sales, the company’s long-term profitability remains under pressure. The operating profit growth rate of 1.34% over five years is insufficient to generate robust shareholder returns or support a higher valuation multiple. The recent quarterly results reinforce this trend, with sharp declines in profitability metrics signalling operational headwinds. Investors should be cautious given the combination of flat financial trends and deteriorating technical signals.
Implications for Investors
The current Sell rating from MarketsMOJO reflects a comprehensive evaluation of Stove Kraft Ltd’s fundamentals and market dynamics. For investors, this rating suggests that the stock may face continued headwinds and that risk outweighs potential reward at present. While the valuation appears attractive, the company’s flat financial trend, average quality, and bearish technical outlook warrant a cautious approach. Investors seeking exposure to the Electronics & Appliances sector might consider alternative opportunities with stronger growth and technical profiles.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Summary
In summary, Stove Kraft Ltd’s current Sell rating is grounded in a balanced assessment of its average quality, attractive valuation, flat financial trends, and bearish technical indicators. The company’s recent financial results and stock performance highlight ongoing challenges that have weighed on investor sentiment. While the valuation may appeal to value-focused investors, the overall outlook suggests caution. Monitoring future quarterly results and market developments will be essential for reassessing the stock’s potential.
Looking Ahead
Investors should remain vigilant about the company’s ability to improve profitability and reverse negative technical trends. Given the current data as of 16 February 2026, the prudent course is to consider the stock as a sell candidate within a diversified portfolio, especially for those prioritising capital preservation and risk management.
Unlock special upgrade rates for a limited period. Start Saving Now →
