Last updated: 25 Jan, 2021 | 09:44 am
Stove Kraft is set to raise up to ₹412.65 crore via IPO which opened for subscription today. Here are the details:
About Stove Kraft
About the issue
For the last three financial years, SKL has posted an average EPs of Rs. - (0.21) and an average RoNW of 1.46%. At the higher end of the price band of ₹385, the issue is priced at an expensive 301 times FY20 EPS. Peers including TTK Prestige (44 times FY20 earnings), Hawkins Cookers (42 times FY20 EPS) with better return ratios and fundamentals are trading at cheaper valuations.
On the basis of Apr-Sep 20 performance, the issue comes at a PE of 33 times 1HFY21 EPS. It is to be noted that 1HFY21 performance has been exceptional, and may not be sustainable for the company in the long-run. Given high valuation, low historical return ratios and moderate fundamentals, we remain ‘Neutral’ on the prospects of the issue.