Shares of kitchen appliances makers continue to rally amid commercial LPG shortage

New Delhi, Mar 12 (PTI) Stocks of kitchen appliances makers continued to rally on Thursday, driven by increase in demand amid disruption in the supply of commercial LPG cylinders due to the West Asia crisis.
     Shares of Jaipan Industries zoomed 14.35 per cent, TTK Prestige jumped 8.30 per cent and Butterfly Gandhimathi Appliances went up by 0.65 per cent on the BSE.
     These firms deal in appliances like induction cooktops and electric rice cookers.
     Stocks of kitchen appliance makers had surged on Wednesday also.
     Reports suggest that the LPG shortage is causing shutdown of some restaurants.
     Restaurant-linked stocks such as United Foodbrands tanked 7.23 per cent, while Westlife Foodworld dropped 3 per cent, Jubilant FoodWorks dipped 2.14 per cent, Restaurant Brands Asia declined 1.39 per cent and Sapphire Foods India slipped 0.12 per cent.
     The stock of food delivery players also ended lower. Eternal declined by 1.14 per cent and Swiggy edged lower by 0.93 per cent.
     Brokerage Goldman Sachs, in a report, said India faces an LPG shortage, importing 60 per cent of its supply, with 90 per cent of imports transiting the geopolitically impacted Strait of Hormuz.
     Despite a 25 per cent increase in domestic production, supply remains constrained. The government is prioritising LPG for domestic cooking and essential sectors, like hospitals, while restricting supply to non-essential commercial enterprises, including restaurants.
     Quick-service restaurant (QSR) chains, such as Jubilant FoodWorks, Devyani International, Sapphire Foods India and Westlife Foodworld, rely heavily on commercial LPG cylinders to run kitchen operations.
     "As per our channel checks, the inventory of LPG cylinders at restaurants is less than one week. Hence, if there is a shortage of commercial LPG cylinders, it would impact the ability of QSR chains to service normal levels of demand, which would lead to a temporary hit to revenues," it said.
     Meanwhile, retailers across Delhi are witnessing a sharp rise in the sale of induction cooktops, with some reporting an increase of 75 to 80 per cent in purchases amid concerns over LPG shortage.
     Shopkeepers said the surge has been there for the past two days, with customers increasingly turning to electric cooktops, infrared stoves and compatible utensils as a backup to an LPG stove.
     Amit Gupta, who owns Effects Kitchens and Hardware at Connaught Place, spoke about a spike in online and offline demand.
     "Since yesterday, we have recorded more than 200 walk-in customers, while another 250 to 300 existing and new clients reached out through phone calls. Earlier, electric cooktops were largely purchased by hospitality outlets, but now even households are coming in a panic, fearing stoppage of LPG supply," he said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)