Stove Kraft Shares Rise 3% After New Foundry Commissioning

Shares of Stove Kraft witnessed a significant rise of over 3% on Tuesday, November 26, 2024, reaching an intraday high of Rs 790 per share. The surge followed the company’s announcement of commissioning a new Cast Iron Foundry at its Harohalli factory, signalling growth and operational expansion.

Business Expansion: Commissioning of Cast Iron Foundry

On November 25, 2024, Stove Kraft commissioned its newly built Cast Iron Foundry at the Harohalli factory. The facility, constructed at a cost of Rs 40 crore, features automated production lines capable of manufacturing high-quality cast iron cookware and components. With an initial installed capacity of 2.2 million pieces annually, the foundry is designed for future scalability to 4.4 million pieces per annum.

This strategic investment highlights Stove Kraft’s commitment to meeting growing consumer demand while enhancing its operational efficiency. The move is expected to strengthen the company’s position in the kitchen appliances and home solutions market.

Stove Kraft’s Market Performance and Product Range

Despite a recent decline of 6% in the past month, Stove Kraft’s stock has surged approximately 59% over the last six months and gained 67% year-to-date. With a market capitalization of Rs 2,544 crore, the company falls under the BSE SmallCap category.

Headquartered in Bangalore, Karnataka, Stove Kraft was established in 1999 by Rajendra Gandhi. It operates under three brands: Pigeon (value segment), Gilma (semi-premium), and BLACK+DECKER (premium). The company offers a wide array of products, including kitchen appliances like pressure cookers, cooktops, and mixer grinders, as well as home essentials such as water bottles, flasks, and aluminium ladders.

Conclusion: The commissioning of the Cast Iron Foundry highlights Stove Kraft’s forward-looking strategy to expand its manufacturing capabilities and cater to a broader market. With its diversified product range and robust growth trajectory, the company continues to solidify its presence in the competitive kitchen and home appliances sector.

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.