Stove Kraft Ltd Stock Falls to 52-Week Low of Rs.454.4 Amidst Underperformance

Stock Price Movement and Market Context

On 1 Feb 2026, Stove Kraft Ltd opened sharply lower with a gap down of -5.77%, continuing a downward trajectory that saw the stock hit an intraday low of Rs.454.4, representing a 7.91% drop from the previous close. This decline outpaced the sector’s underperformance, with the stock lagging the Electronics & Appliances sector by 2.92% on the day. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market showed resilience, with the Sensex opening 119.19 points higher and trading at 82,547.84, up 0.34%. The Sensex remains within 4.37% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. This divergence highlights Stove Kraft’s relative weakness amid a generally positive market environment.

Long-Term and Recent Performance Analysis

Over the past year, Stove Kraft Ltd’s stock has declined by 41.43%, a stark contrast to the Sensex’s 7.53% gain during the same period. The stock’s 52-week high was Rs.871.2, underscoring the extent of the recent price erosion. This underperformance extends beyond the last year, with the company lagging the BSE500 index over the last three years, one year, and three months.

Financially, the company’s operating profit has grown at a modest annual rate of 13.15% over the last five years, which has been deemed insufficient to support stronger stock performance. The most recent quarterly results for December 2025 further reflect subdued momentum. Profit Before Tax (PBT) excluding other income stood at Rs.7.31 crore, down 47.9% compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) for the quarter was Rs.4.15 crore, a decline of 63.4% relative to the prior four-quarter average. The operating profit to net sales ratio for the quarter was at a low 9.06%, indicating margin pressures.

Valuation and Financial Health Metrics

Despite the recent price weakness, Stove Kraft Ltd maintains some positive financial attributes. The company exhibits a strong ability to service its debt, with a Debt to EBITDA ratio of 1.44 times, which is considered low and manageable. Return on Capital Employed (ROCE) stands at 12.6%, reflecting reasonable capital efficiency. The enterprise value to capital employed ratio is 2.7, suggesting a valuation that is attractive relative to its capital base.

Furthermore, the stock trades at a discount compared to the average historical valuations of its peers within the Electronics & Appliances sector. Over the past year, while the stock price has declined by 41.43%, the company’s profits have increased by 32.2%, resulting in a Price/Earnings to Growth (PEG) ratio of 1.1. This indicates that earnings growth has not been adequately reflected in the share price.

Rating and Market Sentiment

MarketsMOJO has downgraded Stove Kraft Ltd’s Mojo Grade from Hold to Sell as of 1 Dec 2025, reflecting concerns about the company’s growth prospects and recent financial performance. The current Mojo Score stands at 40.0, reinforcing the cautious stance. The company holds a Market Cap Grade of 3, indicating a mid-tier market capitalisation relative to its sector peers.

Shareholding and Sector Position

The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. Stove Kraft operates within the Electronics & Appliances industry and sector, which has seen mixed performance in recent months. The stock’s underperformance relative to the sector and broader market highlights challenges in maintaining investor confidence.

Summary of Key Metrics

To summarise, Stove Kraft Ltd’s stock has reached a new 52-week low of Rs.454.4, reflecting a year-long decline of 41.43%. The company’s recent quarterly results show significant declines in profitability, with PBT and PAT falling by 47.9% and 63.4% respectively compared to prior averages. The stock trades below all major moving averages and has been downgraded to a Sell rating by MarketsMOJO. Despite these challenges, the company maintains a low debt burden and attractive valuation metrics relative to peers, with a PEG ratio of 1.1 and ROCE of 12.6%.

While the broader market and sector indices have shown resilience, Stove Kraft’s performance remains subdued, underscoring the need for close monitoring of its financial and market developments.

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