Induction stove Companies: 3 Stocks to Watch

#1 TTK Prestige

First on the list is TTK Prestige.

TTK Prestige is a well-known kitchenware name with leadership in a range of product categories - cooker, cookware, gas stoves, etc.

It has market leadership position in the organised pressure cooker segment. The company has been in existence for over six decades.

TTK Prestige has a decent financial track record and has paid consistent dividends.

It's sales have grown at a CAGR of 6%, while profits have reduced in the past couple of years.

The company has maintained an average ROE and ROCE of 13% and 18% over the past 5 years.

Currently the company is focused on innovation of its product range to remain relevant to consumers. With continuous additions to the product range and promising potential in export markets, the management expects the business to keep expanding.

The management's strategy is to expand capacity whenever the capacity utilisation gets close to 70%.

TTK Prestige Share Price - 1 Year

For more details, see the TTK Prestige company fact sheet and quarterly results.

#2 Bajaj Electricals

Next on the list is Bajaj Electricals.

Bajaj Electrical is a consumer electrical equipment manufacturing company based in Mumbai. It's a part of the Bajaj group.

The company has a good brand recognition among Indian consumers. Its products are also well regarded in the market in terms of quality.

The company has struggled on the growth front over the years due to intense competition but has improved its return ratios recently.

Despite no improvement in revenue and profits over the last 3 years, the company remains debt free with steady cash flows.

The company pays 25% of its profits as dividends.

Bajaj Electricals Share Price - 1 Year

For more details, see the Bajaj Electricals fact sheet and quarterly results.

#3 V Guard Industries

Finally, we have V Guard Industries.

This company is a prominent name in South India in the consumer electrical industry. With a history of nearly 50 years and a strong market position, it has expanded across the country over the years.

The company's product range is vast - voltage stabilizers, digital UPS, inverter batteries, electric water heaters, solar water heaters, domestic pumps, industrial motors, domestics gears, distribution boards, wiring cables, industrial cables, induction cooktops, mixer grinders, fans, rice cooker, gas stoves and solar power systems.

It operates a strong network of distributors, direct dealers, retailers and service centres across India.

While it was not a big player in induction stoves initially, the company has made a name for itself over the years. It's products have been well received in the market.

Over the last five years, the company's sales and profits have grown at 17.4% and 10.8% CAGR respectively. In this period it averaged a return on equity of 15.2% and a return on capital employed of 20.6%. The company has been debt free for many years.

V Guard Industries Share Price - 1 Year

For more details, see the V Guard Industries company fact sheet and quarterly results.

Investors should evaluate these companies' fundamentals, commodity cycle risks, corporate governance, and valuations carefully before making any investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...