Stove Kraft Reports Strong Q2 Cash Flow and Dividend Amid Market Evaluation Adjustment

Jan 22 2025 06:42 PM IST
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Stove Kraft has recently adjusted its evaluation, reflecting a reassessment of its market position and financial metrics. The company reported strong operating cash flow of Rs 112.58 crore for Q2 FY24-25 and declared a dividend of Rs 2.50 per share, indicating a commitment to shareholder value.
Stove Kraft has recently undergone an evaluation adjustment, reflecting a reassessment of its market position and financial metrics. The company, a small-cap player in the consumer durables sector, has demonstrated notable performance indicators, particularly in its operating cash flow, which reached Rs 112.58 crore in the second quarter of FY24-25, marking a significant achievement for the firm.

In addition to its cash flow performance, Stove Kraft declared a dividend per share of Rs 2.50, showcasing a dividend payout ratio of 24.21%. This move indicates a commitment to returning value to shareholders while maintaining a healthy balance sheet.

The stock has shown resilience in the market, with technical indicators suggesting a favorable trend. Over the past year, Stove Kraft has outperformed broader market indices, achieving a return of 85.77%, which stands in stark contrast to the BSE 500's return of 8.58%. The company's return on capital employed (ROCE) is reported at 10.3, coupled with an enterprise value to capital employed ratio of 4.2, suggesting a compelling valuation.

While there are ongoing discussions regarding long-term growth prospects, the recent evaluation adjustment underscores Stove Kraft's strong market presence and operational effectiveness.

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