Hi Manish,

Originally posted by manish_okhade Originally posted by jain208 One thing I like about the company is that the company has reduced it's debt gradually over the last few years and has increased the dividend as well. The company has strengthened it's balance sheet beautifully over the last 3-4 years too and the margins have also improved. Positives- 1. Good balance sheet 2. Great brand name, good management, simple business 3. Cheap valuations and great yield 4. high return ratios 5. no substantial debt and that too is gradually reducing 6. improved efficiency over the past few years 7. Good growth over the last 5 years (2004 NP 0.8 crores as against 2008 NP of 11.26 Crores) Does anybody have any idea what happened to it during 2001-2004?? The company performed quite badly and reduced the dividends drastically and eventually gave no dividend in 2003. But since then it has done quite well. Dividend history:- Dividend Details Year          Dividend (%) 2008-03       100 2007-03       70 2006-03       50 2005-03       30 2004-03       10 2003-03        0 2002-03       10 2001-03       30 2000-03       40 1999-03       50 1998-03       40 1997-03       40 1996-03       35 1995-03       30 1994-03       22.5 1993-03       22.5 1992-03       22.5 1991-03       20 1990-03       22 Comments invited. Abhi.   Abhi,   Can you plz provide some information on management.

Hi Manish,

Vivek has answered your question perfectly. The company has done all the right things to increase the value of the company.

Adding to it, sometimes a good management can also be seen by what it does NOT do with it's funds. Many companies have gone bankrupt in the past, when they have blown their cash in stupid buyouts and diworsifications.

By the way, as I asked in my previous post, does anyone have any idea what happened to the company during 2001-2004??

Abhi.

Hi Manish

Originally posted by Kishor Hi Manish   It is a great comapny.No doubt about it.But the problem i see is the product is so good that people dont buy Hawkins cooker everymonth.The cooker is used for 5-10 years.So the comapnay to grow they have to increase the volume and I am wondering from where it will come,if people are going to use the cooker for 5-10 years.Please can anybody shed some light on this issue?   Financially their B/S is so clean and it is a delight to watch.

For that you will have to find out..
- How many marriages happen in india every year.
- That number divided by Hawkins' market share, will give you number of Cookers sold.
- That number of cookers will also be the same number(Assume) of other kitchen equipments from Hawkins.

Second.
You will have to find out How many people have completed 10 years of having Hawkins.. and upgrading to futura..
Plus service spare parts consumption..