Stove Kraft Ltd Stock Falls to 52-Week Low of Rs.503.05

Recent Price Movement and Market Context

On the trading day, Stove Kraft’s stock price fell by 1.33%, underperforming the Electronics & Appliances sector by 0.3%. This decline extended an eight-day losing streak during which the stock has shed 13.45% of its value. The current price of Rs.503.05 stands well below its 52-week high of Rs.976.75, reflecting a near 48.5% drop from that peak.

Technical indicators reveal that Stove Kraft is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This contrasts with the broader market, where the Sensex, despite a recent three-week decline of 3.33%, remains approximately 3.92% shy of its 52-week high of 86,159.02 points. The Sensex’s 50-day moving average remains above its 200-day average, indicating a more stable medium-term trend compared to Stove Kraft’s stock.

Long-Term Performance and Relative Returns

Over the past year, Stove Kraft has delivered a total return of -45.91%, significantly lagging the Sensex’s positive 7.53% return over the same period. The stock has also underperformed the BSE500 index across multiple timeframes, including the last three years, one year, and three months, highlighting a consistent pattern of below-par performance relative to the broader market and its sector peers.

Such underperformance has been a key factor in the recent downgrade of the company’s Mojo Grade from Hold to Sell as of 1 Dec 2025. The current Mojo Score stands at 46.0, reflecting a cautious stance based on the company’s financial and market metrics. The Market Cap Grade is rated 3, indicating a mid-tier market capitalisation relative to its industry cohort.

Financial Metrics and Profitability Trends

Despite the stock’s price weakness, Stove Kraft has demonstrated some positive financial indicators in recent quarters. The company reported its highest quarterly net sales of Rs.474.42 crores in the September 2025 quarter. Profit before tax excluding other income (PBT LESS OI) surged by 141.4% compared to the previous four-quarter average, reaching Rs.30.03 crores. Operating profit to interest coverage ratio also improved, hitting a peak of 9.19 times, underscoring the company’s strong ability to service its debt obligations.

Stove Kraft’s debt to EBITDA ratio remains low at 1.44 times, reflecting a conservative leverage position that supports financial stability. The company’s return on capital employed (ROCE) stands at 12.6%, which is considered attractive within its sector. Additionally, the enterprise value to capital employed ratio is 2.8, indicating a valuation discount relative to peers’ historical averages.

Growth and Valuation Considerations

Operating profit has grown at an annualised rate of 13.15% over the last five years, a pace that has been characterised as modest within the industry context. While profits have increased by 32.2% over the past year, the stock’s price decline has resulted in a price-to-earnings-to-growth (PEG) ratio of 1.2, suggesting that the market is pricing in tempered expectations for future growth.

The company’s promoter group remains the majority shareholder, maintaining control over strategic decisions and corporate governance. This ownership structure provides continuity but also concentrates influence within a limited group of stakeholders.

Sector and Market Environment

The Electronics & Appliances sector has faced mixed conditions, with Stove Kraft’s underperformance standing out against a backdrop of broader market volatility. The Sensex’s recent decline of 0.41% on the day and its three-week slide of 3.33% reflect cautious investor sentiment, though the index remains relatively close to its 52-week high. Stove Kraft’s relative weakness within this environment highlights company-specific factors influencing its stock price.

Trading below all major moving averages, the stock’s technical profile suggests continued pressure in the near term. The sustained decline over eight consecutive sessions and the significant gap from its 52-week high underscore the challenges faced by the company in regaining investor confidence.

Summary of Key Data Points

To summarise, Stove Kraft Ltd’s stock has reached a new 52-week low of Rs.503.05, down 1.33% on 20 Jan 2026. The stock has declined 13.45% over the past eight trading days and 45.91% over the last year. Despite some positive quarterly financial results, including record net sales and improved profit metrics, the stock’s valuation and price performance remain subdued. The company’s Mojo Grade was downgraded to Sell in December 2025, reflecting these trends.

Stove Kraft’s financial health is supported by a low debt-to-EBITDA ratio of 1.44 and a strong interest coverage ratio of 9.19 times. However, its long-term growth rate of 13.15% in operating profit and relative underperformance against the BSE500 index over multiple periods continue to weigh on market sentiment.

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