Stove Kraft Makes a Good Debut; Closes Up 16%

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Stove Kraft Makes a Good Debut; Closes Up 16%
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Stove Kraft Ltd (NS: STOE ), manufacturer of cooking appliances, had a good debut on the stock markets today, closing up 15.83% at Rs 445.95. It listed at Rs 498, a 29% premium over its issue price of Rs 385. The stock was well received by the market on a day marked by volatility.

The grey market for Stove Kraft was trading at a premium of 15%-17% a day prior to its listing. So its gains on day one are in line with expectations.

Analysts have said that Stove Kraft was priced 34.5 times PE on a trailing basis, while its competition, TTK Prestige (NS: TTKL ) and Hawkins Cookers, were trading at 61 times and 47.5 times, respectively. While Stove Kraft has improved its profitability ratio in recent years, there are questions on whether the company will be able to sustain the improvement.

There have been five IPOs launched in 2021 out of which four have listed on the markets so far (Brookfield REIT will probably list next week). Three of the four, including Stove Kraft, are above their issue prices. Indigo Paints Pvt Ltd (NS: INDG ) closed February 5 at Rs 2,621, up 76% over its issue price of Rs 1,490. HFFC (Home First Finance Corporation) closed at Rs 551, up 6.37% from its issue price of Rs 518. Indian Railway Finance Corp (NS: INID ) (Indian Railway Finance Corporation) closed at Rs 25.65, 1.34% below its issue price of Rs 26.

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