Stove Kraft, TTK Prestige shares rally up to 15% amid gas supply disruption; here is why

Hit hard by the shortage of commercial LPG cylinders, the hoteliers' body, FHRAI, on Tuesday said a large number of hotels and eateries in Mumbai will have to shut operations in the next two days if the situation is not resolved.

'Similar disruptions are also reported from Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana, and Andhra Pradesh,' Pradeep Shetty, vice president of the Federation of Hotel and Restaurant Associations of India (FHRAI), said.

Amid the West Asia crisis, the government has revised the priority order for allocating domestically produced natural gas, placing LPG production alongside CNG and piped cooking gas at the top. This has led to a supply crunch for hotels and restaurants, which use market-priced commercial LPG.

Why Stove Kraft and TTK Prestige stocks are rising

According to media reports, the supply disruption has prompted many consumers to look for alternative cooking solutions that reduce dependence on LPG.

Companies such as Stove Kraft and TTK Prestige, which have a strong presence in induction cooktops, pressure cookers, and other kitchen appliances, are therefore expected to benefit from this shift in consumer behaviour.

As a result, products such as induction cooktops and pressure cookers have seen a spike in demand. Induction stoves use electricity instead of gas, while pressure cookers reduce cooking time and gas consumption, making them attractive options when LPG availability becomes uncertain or expensive.

Market experts believe that sustained gas supply issues could lead to higher sales volumes and improved revenue growth for these companies, which has supported their share prices in the market.

Market participants also note that if LNG disruptions persist and LPG prices remain elevated, the trend of households and restaurants adopting energy-efficient cooking appliances could strengthen further, providing an additional demand tailwind for these appliance makers.

How shares were performing on Wednesday

Shares of TTK Prestige rallied as much as 14.8% to hit a high of ₹539.70 apiece on the NSE, while Stove Kraft was trading over 7% higher at ₹525 on the NSE.

Butterfly Gandhimathi Appliances stock was trading over 3% higher at ₹624.10 apiece on the NSE.