Ace investors Ashish Kacholia’s portfolio holding gains on entering into an understanding with Havells

Inflame Appliances has been approved as a supplier and entered into an understanding with Havells for the supply of Chimneys and OTGs. The models have also been finalised and it expects business to commence from October 2023.  

 The approval by Havells further confirms its capabilities in the Indian market and continues to position it as a leading quality supplier and manufacturer of kitchen appliances in India, becoming the partner of choice for leading brands in its focus category, furthering the nation’s ‘Made in India’ objective.  

 With its Hyderabad facility now operational, it will have a combined capacity across its Hyderabad and Panchkula units to manufacture 600,00 units of Chimneys, 120,000 units of Hobs and 300,000 units of Gas stoves, which makes it the largest outsourced manufacturer in India for kitchen appliances with the widest product range. A facility in North India and now South India enables us to service customers more efficiently.  

 Ace investor Ashish Kacholia owns a 4.20% stake in the company.  

 Inflame Appliances Limited is amongst the top 3 manufacturers of Kitchen Appliances (Chimneys) in India engaged in the manufacturing of Electrical Chimneys, Range Hoods, Built-in Hobs, LPG Gas stoves, Cooktop and OTGs (Oven Toaster Grill). The company has more than 30+ kitchen chimney models and services in 18+ states. The company has 2 facilities – one each at Panchkula, Haryana and Hyderabad, Telangana.  

 The company posted strong half-yearly results. The company generated revenue of Rs 40.60 crore, reflecting a growth of 60.81% compared to the previous year. The operating profit for H2FY23 stood at Rs 8.31 crore, marking a significant increase of 214.06% on a YoY basis. The company’s net profit after tax (PAT) saw a significant jump, reaching Rs 2.81 crore, with a growth of 1526.01% on a YoY basis.  

Havells stock is trading at a PE of 98.1x. The company has a ROCE of 17.3% and an ROE of 16.5% with a market capitalisation of Rs 449 crore.  

In the last 6 months, the shares of the company have given more than 65% returns, and on a YTD basis, the stock has given about 48% returns. It has shown impressive growth and investors should keep a close eye on this stock.   

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.