Stove Kraft IPO received 1.4x subscription on the second day. The retail investor category oversubscribing by 8.9 times.
Stove Kraft is a leading name in manufacturing kitchen appliances in value, semi-value, and premium categories under its distinguished brands Pigeon and Gilma. SKL said it has also received a green signal to start manufacturing under the US kitchen appliance brand Black+Decker.
In manufacturing plants located in Bengaluru and Beddi, the company produces over 660 products in cookware, cooking appliances, household utilities, and more.
In H1 of FY 21, the company increased its revenue and PTA. During FY 20, SKL’s profit rose by 3.2 crores from 0.7 crores in FY 19 and a loss of Rs 12 crores the year before. Between this period, its revenue registered a growth rate of 13 percent CAGR. It implies that the company has grown steadily over the years, maintaining a healthy profit margin. However, SKL also reported a low EBITDA margin during this period between 2-5.
The EBITDA margin is the reflection of a company’s operating profit, excluding external effects. Usually, a healthy EBITDA margin implies a company’s ability to put working capital into use. So, investors also check the EBITDA margin to compare between companies while investing beside other financial metrics. Although SKL registered a growth in its EBITDA margin during H1 of FY 21, the ratio was low during FY20 from its competitors TTK Prestige and Hawkins Cookers, 12 and 15 percent.
Stove Kraft IPO received 0.07 and 8.9 times subscription in high net worth individual and retail investors categories.
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