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Hawkins Cookers Limited is a
company in India which manufactures
domestic pressure cookers and
cookware.
The company has three
manufacturing plants at Wagle estate
Thane, Hoshiarpur and Jaunpur. It
manufactures under different brand
names of Hawkins, Futura, Contura
and Ventura.
The company is the largest cookware
manufacturer in India and exports its
products to more than 60 countries.
The company continued its efforts on
product development with more
emphasis on research and
development activity.
The Top line of the company is
expected to grow at a CAGR of 14%
over 2010 to 2013E respectively.
During the quarter, the company has
reported Net Profit increased to
Rs.93.27million from Rs.80.39 million
in previous year same quarter.
Investment Highlights
Q2 FY12 Results Update
Hawkins Cookers Ltd disclosed results for the quarter ended Sep 2011. Net sales
for the quarter increased by 15% to Rs.985.40 million as compared to Rs.854.34
million during the corresponding quarter last year. During the quarter, the
company has reported Net Profit increased to Rs.93.27million from Rs.80.39
million in previous year same quarter. The Basic EPS of the company stood at
Rs.17.64 for the quarter ended Sep 2011.
SWOT Analysis
Strengths:
Presence of established distribution networks in both urban and rural areas
Strong brand equity
Global scale of operations
Flexible production system
New innovative and world class technology
Strong management high quality motivated human resources
Exports iron-ore to China and Japan on a large scale.
Weakness:
Demand is seasonal and is high during festive season
Low purchasing power of consumers
High rate of accidents gives rise to a number of health and safety issues.
Infrastructural bottlenecks in terms of power, utility, road transport etc.
Opportunity:
Brand image and Market Size
Easy availability of finance
Rapid urbanization
Improvement in the quality of employments
Threats:
Cheap imports from Singapore, China and other Asian countries
Fluctuations in exchange rates
High competition from global players
Adverse Govt. policies
Outlook and Conclusion
At the current market price of Rs.1488.00, the stock is trading at 22.25 x FY12E
and 20.65 x FY13E respectively.
Price to Book Value of the stock is expected to be at 9.66 x and 6.58 x
respectively for FY12E and FY13E.
The company has three manufacturing plants at Wagle estate Thane,
Hoshiarpur and Jaunpur. It manufactures under different brand names of
Hawkins, Futura, Contura and Ventura.
The company is the largest cookware manufacturer in India and exports its
products to more than 60 countries.
The company continued its efforts on product development with more emphasis
on research and development activity.
The Top line of the company is expected to grow at a CAGR of 14% over 2010 to
2013E respectively.
During the quarter, the company has reported Net Profit increased to
Rs.93.27million from Rs.80.39 million in previous year same quarter.
Earning per share (EPS) of the company for the earnings for FY12E and FY13E
is seen at Rs.66.87 and Rs.72.05 respectively.
On the basis of EV/EBITDA, the stock trades at 13.70 x for FY12E and 12.59 x
for FY13E.
We expect that the company will keep its growth story in the coming quarters
also. We recommend ‘BUY’ in this particular scrip with a target price of
Rs.1681.00 for Medium to Long term investment
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hawkins Cookers Limited is a
company in India which manufactures
domestic pressure cookers and
cookware.
The company has three
manufacturing plants at Wagle estate
Thane, Hoshiarpur and Jaunpur. It
manufactures under different brand
names of Hawkins, Futura, Contura
and Ventura.
The company is the largest cookware
manufacturer in India and exports its
products to more than 60 countries.
The company continued its efforts on
product development with more
emphasis on research and
development activity.
The Top line of the company is
expected to grow at a CAGR of 14%
over 2010 to 2013E respectively.
During the quarter, the company has
reported Net Profit increased to
Rs.93.27million from Rs.80.39 million
in previous year same quarter.
Investment Highlights
Q2 FY12 Results Update
Hawkins Cookers Ltd disclosed results for the quarter ended Sep 2011. Net sales
for the quarter increased by 15% to Rs.985.40 million as compared to Rs.854.34
million during the corresponding quarter last year. During the quarter, the
company has reported Net Profit increased to Rs.93.27million from Rs.80.39
million in previous year same quarter. The Basic EPS of the company stood at
Rs.17.64 for the quarter ended Sep 2011.
SWOT Analysis
Strengths:
Presence of established distribution networks in both urban and rural areas
Strong brand equity
Global scale of operations
Flexible production system
New innovative and world class technology
Strong management high quality motivated human resources
Exports iron-ore to China and Japan on a large scale.
Weakness:
Demand is seasonal and is high during festive season
Low purchasing power of consumers
High rate of accidents gives rise to a number of health and safety issues.
Infrastructural bottlenecks in terms of power, utility, road transport etc.
Opportunity:
Brand image and Market Size
Easy availability of finance
Rapid urbanization
Improvement in the quality of employments
Threats:
Cheap imports from Singapore, China and other Asian countries
Fluctuations in exchange rates
High competition from global players
Adverse Govt. policies
Outlook and Conclusion
At the current market price of Rs.1488.00, the stock is trading at 22.25 x FY12E
and 20.65 x FY13E respectively.
Price to Book Value of the stock is expected to be at 9.66 x and 6.58 x
respectively for FY12E and FY13E.
The company has three manufacturing plants at Wagle estate Thane,
Hoshiarpur and Jaunpur. It manufactures under different brand names of
Hawkins, Futura, Contura and Ventura.
The company is the largest cookware manufacturer in India and exports its
products to more than 60 countries.
The company continued its efforts on product development with more emphasis
on research and development activity.
The Top line of the company is expected to grow at a CAGR of 14% over 2010 to
2013E respectively.
During the quarter, the company has reported Net Profit increased to
Rs.93.27million from Rs.80.39 million in previous year same quarter.
Earning per share (EPS) of the company for the earnings for FY12E and FY13E
is seen at Rs.66.87 and Rs.72.05 respectively.
On the basis of EV/EBITDA, the stock trades at 13.70 x for FY12E and 12.59 x
for FY13E.
We expect that the company will keep its growth story in the coming quarters
also. We recommend ‘BUY’ in this particular scrip with a target price of
Rs.1681.00 for Medium to Long term investment
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