StoveKraft ( Investment Idea)

2021년 6월 9일

Huge digital presence more thna 60% of sales online will adapt to change well
Will have to look out for increasing revenue share from higher margin products and look for cost optimization.
Issues is it does not have a premium brand under the company's name.

Needs to diversify away more from only kitchen appliances and focus more on other appliances.
Pretty undervalued at the moment should look to buy on dips.

Buy at the previous trading range top then also buy at the trading range bottom if price goes there.


Always remember this is an IPO stock and IPOS have been know to destroy wealth for a while until the free cash flow really starts coming it won't get a PE revaluation.
(For it to trade at a multiple close to TTK prestige or Hawkins or Havells it needs to stabilize it's cash flows and margins while heavily increasing sales and reducing debt.
So do keep an eye out for that.

Track the quarterly reports also for good results and execution by the management.