Upper Circuit stock: Inflame Appliances continue its dream run on bourses

Inflame Appliances is locked in upper circuit after gaining nearly 5 per cent on intraday basis.

Inflame Appliances is locked in upper circuit after gaining nearly 5 per cent on intraday basis even as Sensex is down by more than 100 points. The stock is up by over 80 per cent on YTD basis and is up by almost 253 per cent in one year. 

What is fueling the rally in the stocks?  

To start with there is a tremendous opportunity in the home appliance markets and several players in the organized segment are doing exceedingly well on bourses. Inflame appliances has a unique business model where it has started manufacturing for other brands and therefore has been competing directly with Chinese suppliers. There is huge untapped opportunity in this space. 

Inflame also plans to manufacture dishwashers and enter the growing segment in next 18 months where there is no other manufacturer in India. The demand for dishwashers is huge in India and going up after the pandemic-triggered lockdown. 

Inflame is into manufacturing kitchen appliances such as chimneys, gas hobs and gas stoves. Here, the market for chimneys is the fastest growing in India among kitchen appliances with approximately 15 per cent year-on-year growth. This growth rate is expected to stay forth for the coming decade or so. Chimneys are presently manufactured mainly by Chinese companies and are imported in India by various brands or small traders for feeding the ever-growing demand of approximately 1.8 million annually. 

Inflame appliances is one example of successful SME listing.