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Modular Kitchen Segment
🧵Story of Two Kitchen Appliances co's targeting 2000crs Revenue within 3-4 years 🦋 🕊️
👉Both r currently doing ~1000crs p.a.
👉Guidance to grow 20-25% p.a.
👉One is having superior Gross Margins
&
Other having Superior Ebitda & Pat margins due to lower Adv. Exp
#stovekraft
👉Both r currently doing ~1000crs p.a.
👉Guidance to grow 20-25% p.a.
👉One is having superior Gross Margins
&
Other having Superior Ebitda & Pat margins due to lower Adv. Exp
#stovekraft
One is Exp. to pay lower tax rate 35% to 25% next FY
&
Other is expected to move from 15% to 25%
Margins for both will be similar at a higher scale as, 🦋 will fix Adv. expenses at 100crs p.a(FY21- 94crs)
But effect on PAT wil vary Vastly
Diff in M.cap~1000crs
#butterfly
&
Other is expected to move from 15% to 25%
Margins for both will be similar at a higher scale as, 🦋 will fix Adv. expenses at 100crs p.a(FY21- 94crs)
But effect on PAT wil vary Vastly
Diff in M.cap~1000crs
#butterfly
#STOVEKRAFT 🕊️
Multiple Updates by STovekraft over d Weekend.
They entered into two new buss. verticals:
1. Modular Kitchen Segment (Mkt. Size ~12k Crs)
2. Electric Switches & Accessories (Mkt Size ~12k crs)
Target to achieve 3% Mkt share in Electric Switches segment in 3yrs.
Multiple Updates by STovekraft over d Weekend.
They entered into two new buss. verticals:
1. Modular Kitchen Segment (Mkt. Size ~12k Crs)
2. Electric Switches & Accessories (Mkt Size ~12k crs)
Target to achieve 3% Mkt share in Electric Switches segment in 3yrs.
They hv acq. 2 co's for the same:
1. Metsmith's facility for Modular Kitchen
2. Skava Electric Pvt. ltd for Electric Switches
For Skava Electric they paid cash of Rs.4crs & acq. it on a slump sale basis.
Revenues ~ 10crs (Few years back they used to do 30-40crs)
1. Metsmith's facility for Modular Kitchen
2. Skava Electric Pvt. ltd for Electric Switches
For Skava Electric they paid cash of Rs.4crs & acq. it on a slump sale basis.
Revenues ~ 10crs (Few years back they used to do 30-40crs)
The founder of SKAVA wil be appointed as d business head & will help in smooth transition of buss.
So, it may look like dey got a bargain but we still don't know about d Profitability.
But point to ponder upon is that if d Founder was unable to scale up the buss. in last 15yrs
So, it may look like dey got a bargain but we still don't know about d Profitability.
But point to ponder upon is that if d Founder was unable to scale up the buss. in last 15yrs
Then what benefit will stovekraft get for appointing him as the Buss. Head.
Although it will be easy for Stovekraft to scale up the business with its huge network of Pigeon Led in southern markets.
After establishing brand name in LED segment they shud be able to make in-roads
Although it will be easy for Stovekraft to scale up the business with its huge network of Pigeon Led in southern markets.
After establishing brand name in LED segment they shud be able to make in-roads
Into switchgear segment too. They wil cater to mid to lower segment and will also introduce SMART SWITCHES into the mkt.
They will keep selling under Skava Brand & stovekraft already hv the infrastructure , further they will spend 5crs more in next 3 yrs.
They will keep selling under Skava Brand & stovekraft already hv the infrastructure , further they will spend 5crs more in next 3 yrs.
Modular Kitchen Segment
This diversification is a lil strange, they will be competing on d pricing front, wid entry level price of Just Rs.69,990
This diversification is a lil strange, they will be competing on d pricing front, wid entry level price of Just Rs.69,990
Mgt has not given any guidance on potential revenue no's but even if they are able to capture Single digit Mkt Share of Rs.12k crs mkt size,then also it will hugely benefit the penetration of the 'PIGEON' brand.
Now whether these Diversification wil help Stovekraft in achieving
Now whether these Diversification wil help Stovekraft in achieving
Rs.2000crs Aspirational Revenue no's in the future , while sustaining the margins or it will turn out to be Di-Worsefication, all depends upon how well Mgt executes.
Both these segments will contribute around 10-15% of Revenues in next 4years.
Both these segments will contribute around 10-15% of Revenues in next 4years.
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