Mehabe score: 7 G Factor: 6 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 5.
Description
Hawkins Cookers is engaged in the business of manufacture, trading and sale of kitchenware.(Source : 202003 Annual Report Page No:42)Site:508486Main Symbol:HAWKINCOOK
Stock trades at 5822.0, above its 50dma 5781.36. It also trades above its 200dma 5425.53. The stock remains bullish on techicals
The 52 week high is at 6200.95 and the 52week low is at 4041.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has a good return on equity (ROE) track record: 3 Years ROE 51.58%
Weakness
– Stock is trading at 17.33 times its book value
-The company has delivered a poor sales growth of 9.57% over past five years.
Competition
– The industry trades at a mean P/E of 47.4x. Whirlpool India trades at the industry’s max P/E of 84.51x. 508486 trades at a P/E of 38.2x
– Industry’s mean G-Factor is 4.7 while the mean Piotski score is 9.0. 508486 has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is -0.4%. The max 1- month return was given by TTK Prestige: a return of 4.11 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 243.0 cr compared to Rs 146.0 cr for period ended Mar 2020, a rise of 66.4%
Operating Profits reported at Rs 32.0 cr for period ended Mar 2021 vis-vis 15.0 for period ended Mar 2020 .
Operating Margins expanded 289.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 45.33 compared to Rs 45.8 for previous quarter ended Dec 2020 and Rs 17.7 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 768.0 cr for period ended Mar 2021 vis-vis sales of Rs 674.0 cr for the period ended Mar 2020, a healthy growth of 12.2%. The 3 year sales cagr stood at 11.6%.
Operating margins shrank to 14.0% for period ended Mar 2021 vis-vis 15.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 81.0 cr for period ended Mar 2021 vis-vis sales of Rs 72.0 cr for the period ended Mar 2020, rising 11.1%.
Company recorded a healthy Net Profit CAGR of 18.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 189.0 cr for period ended Mar 2021 vis-vis Rs 66.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 51.0% compared to 52.0% over the last 3 Years. – The stock has given a return of 36% on a 1 Year basis vis-vis a return of 28% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of 18% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.14% vis-vis 0.14% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 27.88% vis-vis 28.33% for Dec 2020
Conclusion
– has a good return on equity (ROE) track record: 3 Years ROE 51.58% – Stock is trading at 17.33 times its book value
-The company has delivered a poor sales growth of 9.57% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 5781.36 and is trading at 5822.0, thus bullish price action wise.
