Nirmal Bang initiates ‘buy’ rating on Stovekraft, here’s why

Nirmal Bang has initiated a ‘buy’ rating on Stovekraft with a target of Rs 900 – a potential 26 percent upside from current levels.

According to the brokerage house, the company is going to register 21-22 percent of revenue and profit after tax (PAT) compounded annual growth rate (CAGR) over the next four years.

The working capital is going to improve further with vendor financing, and as they rationalise their inventories. The firm also expects a free cashflow of almost Rs 300 crore over the next two-three years versus the loss in the last three years.