Hawkins Cooker-When will the whistle blow
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=353
Printed Date: 26/Jun/2024 at 11:23pm
Topic: Hawkins Cooker-When will the whistle blow
Posted By: reetesh
Subject: Hawkins Cooker-When will the whistle blow
Date Posted: 05/Sep/2006 at 1:35am
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Basant we talk about Hawkins Cooker couple of days back, you said it is trading some 11 times trailing twelve months means FY-07 earning that means its EPS would be Rs.7, but I think profit for this year would be around Rs. 10cr. if they maintain same level of growth and margin, margin you expect them to improve because of raw material cooling of like steel and aluminium. Please let me know how did you get to this figure and if I am correct in my assumptions? ------------- When going gets tough, that’s when tough (people) gets going. |
Replies:
Posted By: basant
Date Posted: 05/Sep/2006 at 1:51am
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Guess this is whjat I wrote:
"The CMP Rs 91 iis discounted less then the 13 times trailing and at a market cap of Rs48.56 crores it appears very cheap (the Hawkins brand would be worth the full market"
Trailing means I was doing Fy 06 this year they should do about Rs 12 - Rs 13 (buying is more in the festive season Oct - March)
Yes margins should be better its RoE is also good ( 25%+) the not sure why it si not moving.
About input costs going down yes, that should benefit the company but I do not think that even when they had gone up you would have a problem passing the cost of a steel and aluminium in a cooker ; the demand is price inelastic and people buy cookers because they need one it is not a luxory item just think a family buys one cooker in 2-3 years and that too we are spending Rs 500 on it.
Since it is a micro cap no Inst./Mf would be interested but while that is an opportunity it is for the very patient investor. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: jstk
Date Posted: 16/Sep/2006 at 12:37pm
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Hawkins june qtr nos have been excellent. Sales have increased [ 30% yoy - althogh on a small base ] & margins have expanded .The tax outgo has increased as past losses have been wiped out last. I agree with BM's views that the demand for the product is not completely price dependent. In the case of cookers [ as in so many other things in our life
 ] ,here the 'lady of the house' decides and she wants to make sure that she uses the best product / does not compromise- as this is a daily used product and benefits of a superior product in the cooker category range from faster cooking time / lower gas consumption to showing off the newest model to your neighbour !!The Hawkins brand is very firmly entrenched in the consumer minds over tha last 4 decades and the export potential [ 90% of indian family abroad use a cooker for the dal / rice / sambar ] for their top end line [ futura ] is huge.
Also with Fringe benefit tax issues pertaining to Institutional sales [ for gifting to staff etc ] sorted out, i feel confident that this company is going to break new paths in the coming new years.
Also they now a new CEO from IIM [ he has been with the co for sometime ] and Brahm Vasudeva is a non exec chairman now.
I am confident that this year's EPS will be in the range of 19-22 depending on how the season sales pan out.
At the current price of 89, Hawkins Cookers can cook up some serious profits !!
rgds, jayendra
------------- If you buy for a non-value reason, you will end up selling for a non-value reason. |
Posted By: basant
Date Posted: 16/Sep/2006 at 1:02pm
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as in so many other things in our life ] ,here the 'lady of the house' decides and she wants to make sure that she uses the best product / does not compromise- as this is a daily used product and benefits of a superior product in the cooker category range from faster cooking time / lower gas consumption to showing off the newest model to your neighbour!!
_____________________________________________________________
This is a very important piece of observation. Can we think of some other products in growing businesses. Not VIM and Surf since they are already discounted by the market. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 16/Sep/2006 at 1:10pm
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Instantly it came to my mind that there is a brand called "ScotchBrite"-scrubber, which is used while washing utensils. It is made by 3M, well known MNC. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Equity Buff
Date Posted: 16/Sep/2006 at 1:40pm
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I think Hawkins is a good stock and can deliver good returns for the patient investor. Mr. Basant has put EPS estimate for Fy 07 at Rs. 12-13 and Mr. Jayendra has put EPS estimate for FY 07 at Rs. 21-22. Mr. Jayendra since your estimate of EPS is a lot lot more bullish, pls inform, if possible, your reason for this aggressive bullishness. Thanks
Equity Buff
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Posted By: basant
Date Posted: 16/Sep/2006 at 1:44pm
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I have been following 3M while it is a BIG company in the US the management has not tried to penetrate into India. The stock is being recomended for over 10 years now - yes 10 years and it has kind of gone nowhere because the parent has not been interested. Now many could say that there lies the opportunity but I would say that this opportunity is uncertain. What happens if 3M decides to come to India with full force in 2010? The opportunity cost of capital is very high. But if 3M decides to move the stock could run! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: jstk
Date Posted: 16/Sep/2006 at 3:28pm
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Traditionally the 1st qtr is the weakest for Hawkins [ loss reported in june qtr 03 , june qtr 04, june qtr 05 ] . This year the 1st qr has been very good with an eps of 3.61 [ no extraordinary / non recurring income ]. co has declared a Rs.5 dividend for last year indicating their confidence in the future.
large format store sales are also looking strong. The next 3 qtrs should be very good and an eps of 19-22 looks achievable.
also RKJ used to hold nearly 4% in the co till around 2 yrs back ......i'm not 100% sure but he still holds just a little under 1%. Although this has not been one of his most succesfull investements, the very fact that he was an investor is proof enough of the potential.
The company is a 'late bloomer' but now looks well entrenched on the growth path.
jayendra ------------- If you buy for a non-value reason, you will end up selling for a non-value reason. |
Posted By: reetesh
Date Posted: 16/Sep/2006 at 4:54pm
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Hawkins is good defnsive bet, I am looking at those companies who can defend me.. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: manishdave
Date Posted: 16/Sep/2006 at 10:07pm
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Reetesh,
There is contradiction here:
Ships are safe in harbor but they are meant to be in sea.
Please take it lightly... :)
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Posted By: reetesh
Date Posted: 16/Sep/2006 at 3:52am
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There is hardly any contradiction, you interpreted the whole thing contradictorily. I am a bottoms up kind of an investor who always believes in staying 100% invested, who wants to play safe and dont follow the heard mentality.
I dont want to be another "TITANIC" but yet I want to be in middle rather than on shore..
 I hope this clarifies my point..
Reetesh... ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: reetesh
Date Posted: 21/Sep/2006 at 9:24pm
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Hi all, Hawkins India is clear leader in Pressure Cooker market and aggresive launching new products in Pressure Cooker and Non-stick Cookware. Indian Kitckenware market size is Rs.3000 Cr.(Cooker,Non-stick cookware and kirchen appliancs) of which Modular Kitchen contitutes 33%, Cooker 22%, Non-stick cookware 4%, Mixer Grinders 23% and rest are gas stove etc. With clear leadership position in 2 segment namely Cooker and Non-stick cookware and with Cooker market growing roughly at 8% YoY and raw material prices easing, Hawkins with 5.5% yeild and market cap. of less than 50cr at Rs.90 look very very attractive for patient investor.
Around 52.81% (Including few % of promoter shares) of Hawkins shares are still in Physical form, and around 56% promoter holding(Including few % of physical shares as on March`06). Company hold 78 valid patents and design registrations in various countries around the globe. Management quality- Hawkins management would give any top rung Indian company management run for its money.
------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: kulman
Date Posted: 21/Sep/2006 at 9:58pm
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As a business, there is a general consensus that kitchen-ware will boom in view of untapped rural market potential.
I would request Basantjee to have a look at both Hawkins and TTK-Prestige for comparison purpose from financial ratios/analysis view point. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: omshivaya
Date Posted: 21/Sep/2006 at 10:06pm
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Anything that booms in the "rural market" has to sacrifice "pricing power" for "volume". Just like telecom, whereas charges of calls have just kept on reducing but volumes have increased.
Telephone and Power can be called necessity so rural area thrust usually leads to good growth and profits. I am not too sure of what kind of growth can "kitchen-ware" get in a rural area, with a rural mindset being quite different from a urban one. But who knows? Anything is possible  ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: reetesh
Date Posted: 21/Sep/2006 at 11:05pm
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Well OM, I don`t think Hawkins is Rural Market play only, but it has brands for that segment of market as well and in my view it is more of Urban market play with its "FUTURA" range of cookware. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: valueman
Date Posted: 29/May/2007 at 2:59pm
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Hawkins Cooker net profit rises 23.36% in the March 2007 quarter Sales rise 29.28% to Rs 58.64 crore
Net profit of Hawkins Cooker rose 23.36% to Rs 3.01 crore in the quarter ended March 2007 as against Rs 2.44 crore during the previous quarter ended March 2006. Sales rose 29.28% to Rs 58.64 crore in the quarter ended March 2007 as against Rs 45.36 crore during the previous quarter ended March 2006.
For the full year, net profit rose 85.86% to Rs 7.49 crore in the year
ended March 2007 as against Rs 4.03 crore during the previous year
ended March 2006. Sales rose 27.04% to Rs 173.24 crore in the year
ended March 2007 as against Rs 136.37 crore during the previous year
ended March 2006. Any views about the current results ?Is it worth investing ? |
Posted By: reetesh
Date Posted: 29/Jun/2007 at 2:31am
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Yes, you are anyway getting more than what bank will offer you + you have consumption story with shareholder friendly management. ------------- When going gets tough, that’s when tough (people) gets going. |
Posted By: valueman
Date Posted: 10/Dec/2007 at 7:34pm
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Stock tips from your kitchen Mudar Patherya November 19, 2007 http://moneytoday.digitaltoday.in/stock-tips-from-your-kitchen-9.html Mudar Patherya I did a straw poll in my office 20 minutes ago. “If you were setting up home, which pressure cooker would you buy?” Eight out of 10 shouted back absent mindedly: “Hawkins!” Ipsh*ta said: “Because it is the most visible pressure cooker brand in India” Huzaifa answered: “Because it has been around from the previous generation.” Rajat quoted an old ad line of the brand. If the men in my office were so aware of the brand, then it was time to look at Hawkins the company; if the men in my office voted for Hawkins with their throats, then it was time for housewives to vote with their purses. Hawkins qualifies as an investment on three counts: it is the biggest pressure cooker brand in India, this brand leadership is reflected in rising profits and the rising profits are not reflected in its market capitalisation. Consider the audited results of 2006-7. • Turnover increased from Rs 137 crore in 2005-6 to Rs 174 crore in 2006-7, a volume play. • Profit after tax strengthened from Rs 4.03 crore in 2005-6 to Rs 7.49 crore in 2006-7, a value play. • EBIDTA margin strengthened from 6.99% in 2005-6 to 8.6% in 2006-7, a margins play. One might assume that it was a rocking year for the company: more homes being built, more pressure cookers being bought. Not so simple. Because something also went terribly wrong. Most metals went ballistic and material costs increased from 43% of total income in 2005-6 to 47% in 2006-7. Many companies would have written a doleful balance sheet commentary: “For reasons outside of our control…” Hawkins didn’t. Instead, the company... • Reduced expenses. Total expenses as a proportion of total income declined from 51% in 2005-6 to 45% in 2006-7, indicating that the company more than recovered the rise in material costs. • Made better products. Result: Sales increased 27% while industry grew 7%. • Passed on cost increases. Pressure cooker realisations rose by Rs 30 a piece; cookware realisations by Rs 35. • Repaid debt. Loans declined from Rs 15.04 crore to Rs 10.82 crore, reducing interest outgo from Rs 2.07 crore to Rs 1.75 crore. • Made better use of capital. Every rupee of working capital generated Rs 3.41 in 2005-6 and Rs 3.58 in 2006-7. The crusade continues. In the second quarter of 2007-8, EBIDTA margin was the highest in the past five quarters at 10.36% (5.92% in the corresponding quarter, 2006-7), EBIDTA Rs 5.17 crore and post-tax profit Rs 2.69 crore. Equity Rs 5.28 crore. I am a conservative man. I assume that no growth will transpire in the second half and the company will only replicate its earnings of the first. That would still mean an EPS of Rs 18 on an equity price of around Rs 150—a PE of around 8. Look at this from another angle. You can buy the biggest pressure cooker brand in India for less than Rs 80 crore. Did you yawn? Well, Hawkins paid out Rs 7 (this is not a printing error) per share as dividend in 2006-7. Work out the yield math. Housewives, stop haggling on the grocery and move on to bigger bargains instead. |
Posted By: jstk
Date Posted: 27/May/2008 at 6:58pm
------------- If you buy for a non-value reason, you will end up selling for a non-value reason. |
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Posted By: kumardiwesh
Date Posted: 14/Jun/2008 at 1:18pm
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Looks fit for the case of buy-and-forget kind of investments.It's the classic safe stock.EPS of Rs 21.30 for FY08.Trading at a PE of around 8 at Rs 165.Dividend yield in the range of 4-5% or even more.Consistently improving RoE and RoCE.Debt/equity ratio is less than 0.5.And, of course they have the moat in terms of their brand and ability to pass on cost increases. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: nikhil090
Date Posted: 21/Jun/2008 at 3:29pm
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Added some Hawkins cooker. Seems like a good buy with growth and value both at this point of time. |
Posted By: subu76
Date Posted: 21/Oct/2008 at 1:59am
| Could someone kindly share a link to their annual report? It does not seem to be available on their web site http://hawkinscookers.com/ - http://hawkinscookers.com/ |
Posted By: India_Bull
Date Posted: 21/Oct/2008 at 2:29am
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Is cooker ki city bajane ki jagah I will look for micro oven beauties !!
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: jain208
Date Posted: 13/Mar/2009 at 9:08am
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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. ------------- ======================================= The more it changes, the more it’s the same thing. |
Posted By: manish_okhade
Date Posted: 13/Mar/2009 at 10:06am
Abhi,
Can you plz provide some information on management.
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Posted By: Vivek Sukhani
Date Posted: 13/Mar/2009 at 10:09am
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Hi Manish, A management's worth is in what it has done for the company. As Abhishek has pointed out, it has reduced debt, increased dividend over the years, do you need even more information on the management?
Hawkins is an iconic brand like prestige. So, you may not have much doubt on its management quality!!!! ------------- Jai Guru!!! |
Posted By: manish_okhade
Date Posted: 13/Mar/2009 at 10:31am
| Yes, Hawkins is a cool brand and its just vouched by wife when i spoke to her then i got very enthusiatic reply. |
Posted By: jain208
Date Posted: 14/Mar/2009 at 8:03pm
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. ------------- ======================================= The more it changes, the more it’s the same thing. |
Posted By: paragdesai
Date Posted: 14/Mar/2009 at 9:18pm
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http://www.bseindia.com/qresann/result.asp?scripcd=508486&scripname=Hawkins+Cookers+Ltd&quarter=MC2003-2004&type=41.5 - This may help.
------------- Luck is what happens when preparation meets opportunity .... |
Posted By: Kishor
Date Posted: 22/Mar/2009 at 3:25pm
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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.
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Posted By: wiseowl
Date Posted: 25/Mar/2009 at 12:26pm
They also manufacture other cooking utensils of very good quality. ------------- You alone are responsible for your actions. |
Posted By: 9StockPortfolio
Date Posted: 25/Mar/2009 at 2:09pm
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.. ------------- Pursuit of Value |
Posted By: basant
Date Posted: 25/Mar/2009 at 2:34pm
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The real trigger is the rural india which upgrades and the past history will indicate the pace of that upgradation. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: paragdesai
Date Posted: 25/Mar/2009 at 3:08pm
Also read when invested in this company is easy availability of gas in cities as well as rural India which will boost the sells of pressure cookers. also their cookware family sets are in great demand during festival season for corporate & staff gift. (may be not for next year )------------- Luck is what happens when preparation meets opportunity .... |
Posted By: NeerajMarathe
Date Posted: 25/Mar/2009 at 4:08pm
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i like the company...in the past 5 years, they have built up a damn gud balance sheet.. but lemme be the devil's advocate here.. they have capacity of bout 70 lakh+ cookers..and they produce only 24 lakh cookers(FY08), still, they r incurring a capex of 8 cr or so, as per bse announcement on 31st jan. now why is this capex being incurred?
second, if there is going to be this sizable expenditure, wud the dividend payout be sustainable?
------------- Regards Neeraj Marathe |
Posted By: paragdesai
Date Posted: 25/Mar/2009 at 5:44pm
May be their excess capacities are of old technology & they are looking for new technology which may save cost & provide good quality of product and also possible that they are in process of introduction of new product range. What I observe is that their ability to handle on raw material side. They are pure metal consuming company but score 100% despite high prices of commodity last year. That's amazing. ------------- Luck is what happens when preparation meets opportunity .... |
Posted By: subu76
Date Posted: 31/May/2009 at 1:34pm
Apparently the government increased duty on cookers from 8 to 16%. This was further accentuated by monsoon failures and the likes. Then the govt moved the duty back to 8%.
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Posted By: nikhil090
Date Posted: 31/May/2009 at 8:28pm
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20 Rupees dividend per share announced. At current price, the yield is more than 9.5% - I hope increase in dividend rate from 10 Rs/share to 20 Rs/share reflect the optimism of the management and sustainability of performance.
THe stock will most definitely go up on Monday.
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Posted By: Vivek Sukhani
Date Posted: 01/Jun/2009 at 1:39pm
locked at upper circuit with more than a lac shares with total quantity traded at less than 5k, as of now on BSE.
Expect 2 more hits....... ------------- Jai Guru!!! |
Posted By: paragdesai
Date Posted: 01/Jun/2009 at 5:39pm
On a conservative basis at 8 pe it should trading around Rs. 280-290 ------------- Luck is what happens when preparation meets opportunity .... |
Posted By: Vivek Sukhani
Date Posted: 01/Jun/2009 at 5:51pm
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Are the results out....???
By the way, why to be conservative? Secondly, even if to be conservative, whats there in giving it a multiple of 8? ------------- Jai Guru!!! |
Posted By: subu76
Date Posted: 01/Jun/2009 at 5:55pm
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The results were indeed printed in ET today. |
Posted By: paragdesai
Date Posted: 01/Jun/2009 at 6:00pm
http://hawkinscookers.com/coresults310309.html - Result is here: Historically it was trading at this PE. So on a conservative note I am saying this. I don't mind if it trade at 20-25 pe.  ------------- Luck is what happens when preparation meets opportunity .... |
Posted By: subu76
Date Posted: 01/Jun/2009 at 6:05pm
| Hi Parag, How do you find out about historical P/E of a stock? I am trying to hunt for this data desperately. |
Posted By: paragdesai
Date Posted: 01/Jun/2009 at 6:13pm
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I am talking for last 3 years. For more details you can go to BSE Archive Section. http://www.bseindia.com/histdata/stockprc.asp - Here
------------- Luck is what happens when preparation meets opportunity .... |
Posted By: Vivek Sukhani
Date Posted: 01/Jun/2009 at 6:36pm
With this kind of a performance, if you give it a 8 P/E, I will get the stock at that P/E and short the other stocks.....nothing could be a better trade than that ------------- Jai Guru!!! |
Posted By: subu76
Date Posted: 01/Jun/2009 at 6:56pm
Thank you Sir.
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Posted By: rushabh
Date Posted: 02/Jun/2009 at 2:31pm
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If the stock can maintain the level of 20-25 PE, i see it touching 350-400 mark by october. The demand for the cookers is immense as i got to knw frm a dealer in the city who deals specificly in this brand. Moreover, wot i learnt was the demand for this brand of cookware is such that the delivery of the stock recieved by is dealers are those which are booked 2 months prior. The stock has great growth potentiality and even in these adverse market conditions it has a dividend yield of approx. 9.5%. |
Posted By: subu76
Date Posted: 02/Jun/2009 at 3:35am
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Hi Rushabh, Any ideas about cash discounts by Hawkins/TTK to dealers?
I guess we will get a better idea about the unit sales in this year's Annual report.
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Posted By: rushabh
Date Posted: 03/Jun/2009 at 1:13pm
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No! The dealers are very stringent when it comes to any kind of discounts except for those which the shareholders recieve as discount coupons along with their dividend warrants. The sales will undoubtedly grow and the profit and operating margins will reflect immense growth as well. This wud happen as a result of the slashing of steel prices in the period between december to march and this has come as a benefit to this company in the form of acquiring cheap raw materials and its material cost has declined drastically resulting into higher profit and operating margins.
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Posted By: subu76
Date Posted: 03/Jun/2009 at 3:00pm
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Thanks for your answer. |
Posted By: rakeshmehta48
Date Posted: 03/Jun/2009 at 8:38pm
This seems very impressive. (I hope 2 months is not the normal norm in this industry) Then company should have pricing power also.
And with raw material prices on the lower side, company should benefit with higher margins in future.
All in all worth accumulating at levels, suitable to every individual.
------------- Fund Management is Most Important |
Posted By: subu76
Date Posted: 03/Jun/2009 at 2:22am
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Deleted. |
Posted By: subu76
Date Posted: 03/Jun/2009 at 2:24am
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Rusabh Sir...a few more questions.
1. Any idea about imports from China? Why is China a threat when it comes to export market but not a threat in India itself? (as per Annual Reports)
2. Also, about local brands. TTK Prestige guys say that the market is divided 50:50 between establised branded players (read Hawkins and TTK) and regional and unbranded players and the market share of the latter is going up.
3. Also, any comparison between TTK Prestige and Hawkins? How do they treat there dealers, who is more desperate to push numbers etc etc. Any general comments about ethics.... (though sales careers is not for gentle souls
)
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Posted By: rushabh
Date Posted: 04/Jun/2009 at 3:40pm
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I dont really see China as a threat in this sector. Hawkins cooker is a worldwide well established brand and as u aforesaid it is not at all a threat in India. Hawkins cookers are the #1 cookware brand in Europe and Americas and it is rapidly establishing its market in India as well. Talking about the imports from China, i do not have much idea about it but what i can assure it any kind of cookware imports from China wont affect the sales of this brand for sure because of the above mentioned reasons.
Secondly, if you make a comparison between Hawkins and TTK, Hawkins would certainly be the superior one for the following reasons.
1. Hawkins has a production capacity of 75L and rite now it is using for
about 35-40 percent of its capacity. Therefore to match up any kind of
hype in demand in the near future (which seems very likely) the
production cost would remain the same.
2. Moreover, Hawkins cookers also deals in the cookware ranges and this
Segment has grown @ 40% this year. Adding more the debt of the co. is
Very neglible as compared to TTK prestige and therefore it pays far
lesser interest than the latter.
3. Dividend criteria is always important from an investor's point of view
i think we all know what Hawkins has returned in form of dividend.
Considering these fundamentals i would strongly recommend hawkins cookers with a long-term view and i my views are very bullish for the particular stock. I have been a part of the co. since 3 years now and all in all worth accumulating at levels.
 |
Posted By: shivkumar
Date Posted: 04/Jun/2009 at 4:53pm
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Pressure cooker is a very Indian phenomenon. Outside of the Indian community few people have heard of pressure cooking! Only scientists and researchers operating in mountaineous regions use pressure cookers! So it must be NRIs who are carting away Hawkins while going to university and buying subsequent replacements at the Indian grocer's. |
Posted By: subu76
Date Posted: 04/Jun/2009 at 10:49pm
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Quick points on your notes....I am trying to paint the entire picture.
TTK also uses 50% of it's capacity.
This can't be assumed. Between 2003/08 cooker sales only doubled.
TTK generates more income from cookware than Hawkins does.
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Posted By: NeerajMarathe
Date Posted: 04/Jun/2009 at 11:06am
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Subuji, on capacity utilisation.
TTK cookers capacity in 07 was 20 lakh cookers..they increased it to 40 lakhs in 08..(they have increased capacity recently, they are at 50% capacity utilisation)
Hawkins has the huge capacity since years..
i had made a very detailed comparison report on TTK and Hawkins. If anyone wants it, plz mail me at mailto:[email protected] - [email protected] and i will reply with the report..
(i cant post it here coz it contains many tables)... ------------- Regards Neeraj Marathe |
Posted By: subu76
Date Posted: 04/Jun/2009 at 11:25am
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Hi Neeraj,
Most of us would love .... really love to go through your report.
While i'll be mailing you to hear from you .... if it's not too much of a problem please copy paste here too...so that we can refer to it for a long time.
I'll edit it to make it readable.
Regards.
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Posted By: NeerajMarathe
Date Posted: 05/Jun/2009 at 3:29pm
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Dear Subuji,
I have already sent u the report after receiving ur mail..
I tried pasting it here, but the tables and the formatting gets screwed..cant read it properly... ------------- Regards Neeraj Marathe |
Posted By: Hitesh Shah
Date Posted: 05/Jun/2009 at 3:37pm
Subu's the man! If he can't unscrew it, nobody will ! But we won't give up hope. If he needs help, we're there!------------- |
Posted By: subu76
Date Posted: 05/Jun/2009 at 4:39pm
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Yes, excel, ppt, word ....these are the apps I am really good at.
I have got Neeraj's doc (thanks Neeraj).... i'll put it up here later today.
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Posted By: subu76
Date Posted: 05/Jun/2009 at 11:55pm
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I shared Neeraj's doc at http://www.megashare.com/1020348 - http://www.megashare.com/1020348 .
Neeraj,kindly let me know if this leads to any copyright issues.
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Posted By: Hitesh Shah
Date Posted: 05/Jun/2009 at 12:02pm
Thx! ------------- |
Posted By: NeerajMarathe
Date Posted: 05/Jun/2009 at 12:58pm
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No issues at all boss... its a dated report...our client has already acted on it at that ime only...so no problem..
just hope it was helpful... ------------- Regards Neeraj Marathe |
Posted By: subu76
Date Posted: 05/Jun/2009 at 2:04am
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Thanks Neeraj. This was quite an insightful document.
The recent run up of Hawkins stocks though is making it expensive vis a vis Prestige. Also, given that Prestige has a higher raw material expense i think the cooling down will have a bigger impact on it.
Having said that...the promoters are repulsive.
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Posted By: Vivek Sukhani
Date Posted: 06/Jun/2009 at 9:11am
I was going through their Annual report( they sent that to me quite fast upon my request) for the Year ended 31.03.2008 and noticed a fgew things:
1.They tried to advertise their financials. Infact, their top cover was nothing short of an advertisement of their financial performace.
2.The word "China" was nowhere to be seen. So, I dont know how you got this clue about import threat from China....must be from TTK Prestige's Annual report.
3.Balance Sheet and P/L are simply spectacular. The borrowings which we are seeing, and that also is insignificant, is nothing but forced borrowings. A very major part of this borrowings is Deposit from Directors and shreholders. Just goes on to show the faith the directors and shareholders have in their company.
4.Low capacity utilisation is both a boon and a bane, depending upon how you look at it. Surely, it pulls down the Return on Assets ratios, but it also implies that capex wont be sufficient in the coming years.
Barring point number 1, and that in my opinion is quite ignorable, for a company has the rights to do so, if its true and fair. By increasing the dividends by 100 p.c. this year, they have proven their intentions.
Seems an investor delight, from whatever angle you may look at it!!!!! ------------- Jai Guru!!! |
Posted By: subu76
Date Posted: 06/Jun/2009 at 10:14am
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Yes true....the China clue was from the TTK report. But it seems that they played up the China factor a bit.
Also, Vivek how did you ask them to send the annual report? it is via mail?
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Posted By: Vivek Sukhani
Date Posted: 06/Jun/2009 at 10:47am
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Yes, through e-mail.
------------- Jai Guru!!! |
Posted By: Vivek Sukhani
Date Posted: 06/Jun/2009 at 10:56am
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Another positive which I saw was that they made no presentation to institutional investors. Although many people view it as a negative, I think it to be very positive. This just shows:
1. The company does justice to small shareholders by sharing information equally.
2.They dont have any fund raising plans, and thereby equity dilution plans.
3.This also limits brokerage coverage.
4.The company doesnt intend to force people into noticing it.
3. ------------- Jai Guru!!! |
Posted By: subu76
Date Posted: 07/Jun/2009 at 12:08pm
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Hi Vivek, don't you think it's too small a firm to be on the radar of institutions? After all it's just a 150 cr company (and that too after the recent run up)
Offcourse, TTK does make presentations....they have a lot more visibility due to the RJ factor
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Posted By: Vivek Sukhani
Date Posted: 07/Jun/2009 at 1:12pm
All these are positives.....BTW, how does RJ increase the visibility? People may become more convinced, alright....but that doesnt affect visibility.
Actually, investment decisions should always be independent. Whether RJ is there or not, should be of little consequence.
------------- Jai Guru!!! |
Posted By: subu76
Date Posted: 07/Jun/2009 at 3:34pm
| True.....just that RJ's presence makes institutions more curious to snoop around. |
Posted By: Hitesh Shah
Date Posted: 07/Jun/2009 at 4:33pm
Do you really think that's true? I know he gets a lot of indirect mention in the "heard on the street" section in ET but to me that's a negative. ------------- |
Posted By: subu76
Date Posted: 07/Jun/2009 at 5:33pm
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Sure....a lot of MF guys are his chelas.....and why not. Where are you Graham quotes for the day?
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Posted By: Hitesh Shah
Date Posted: 07/Jun/2009 at 6:14pm
Right now I'm in a dry patch (& it's Sunday)! ------------- |
Posted By: subu76
Date Posted: 07/Jun/2009 at 7:27pm
| Ok...NP....let me try my hand. |
Posted By: subodhp
Date Posted: 07/Jun/2009 at 10:15am
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Labour related: Wage costs are now about 13-14% of sales. This apart there are outsourcing costs ( around 10 cr for Mar 08). Would anyone have a breakup of these wage costs ( 26 cr in Mar 08) in terms of direct ( production oriented) and indirect ( distribution oriented), as well as break up in terms of numbers |
Posted By: nikhil090
Date Posted: 12/Jun/2009 at 11:41am
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It is a good defensive play but I am not sure whether it can increase earnings at any significant rate from hereon. Now the net margins are close to 10% which in this kind of business are absolutely fantastic. Since there is no interaction with the management, no idea about their views, this is my personal view.. Also just to remember that the company made a loss in 2001-02 and thereafter probably learnt the lessons and innovated and then have not looked back. However I am still add some more and then see..Unless the performance deteriorate significantly it will holdup quite well in this circumstance also. Also if the performance is good, we can be sure that there would be increase in dividend payout next year. so we can take midcourse correction, if required. |
Posted By: nikhil090
Date Posted: 12/Jul/2009 at 12:42pm
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Saw the balance sheet of Hawkins today - as usual clear financials and strong balance sheet with no flab nothing. On 160 cr market cap, 14-15 cr is cash. In the last 5 years while sales have doubled the net profit has grown by more than 6 times.. Also management is quite optimistic and infact states that they are having more demand than they can service. Company is quite conservative in its accounting and that is good for small investors. they also think that industry is growing at 7% and hence we can expect that hawkins can grows better than industry since they are No 1 in this category. Looks set for 12-15% growth and corresponding increase in profits.. |
Posted By: Vivek Sukhani
Date Posted: 15/Jul/2009 at 7:01pm
I got my copies today. The thickness of the Annual report was an element of surprise. A totally no-nonsense kind of an annual report.
They did sound optimistic.....there was no indication of recession/slowdown/downturn in their language.
Also, the debt on the balance sheet is not required at all. Its only in the nature of fixed deposits from directors and shareholders. The company has adequate cash to repay the fixed assets anytime as per the balance sheet. ------------- Jai Guru!!! |
Posted By: shadows
Date Posted: 15/Jul/2009 at 7:18pm
| Vivek jee how to get these copies. are thay distribute thair annual results to all shareholders |
Posted By: Vivek Sukhani
Date Posted: 31/Jul/2009 at 8:27pm
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What about this:
http://hawkinscookers.com/coresults300609.html - http://hawkinscookers.com/coresults300609.html ------------- Jai Guru!!! |
Posted By: hit2710
Date Posted: 31/Jul/2009 at 11:37pm
IF YOU LOOK CAREFULLY, HAWKINS RESULTS ARE MUCH BETTER THAN WHAT IS SEEN BECAUSE LAST YEAR THERE WAS AN OTHER INCOME COMPONENT MUCH HIGHER THAN CURRENT QUARTER AND HENCE GROWTH IN THIS QUARTER'S PROFIT VIS A VIS SAME QUARTER LAST YEAR IS MORE THAN DOUBLE. IF WE COMPARE BOTH THE STOCKS HAWKINS HAS OBVIOUSLY THE BETTER MARGINS THOUGH LOWER TOTAL SALES. TTK CAN DO WITH SOME IMPROVEMENT IN MARGINS. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: gopinathpc
Date Posted: 02/Aug/2009 at 11:50am
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Yes Hawkins has over 6% yield and it's PE is slightly
above avg for it's industry. Castrol is a good company but it's yield is just over 2%. Thanks for the suggestions |
Posted By: Vivek Sukhani
Date Posted: 03/Aug/2009 at 1:03pm
Castrol's yield is just over 2 p.c.......but how???? ------------- Jai Guru!!! |
Posted By: tigershark
Date Posted: 03/Aug/2009 at 2:34pm
the cooker has exploded 
------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: Ashutosh
Date Posted: 03/Aug/2009 at 3:15pm
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yeah, The cooker gave several seaty at 2.20 PM, 3.00 PM and now its 3.50 PM .....that a nice food is cooking. PS: time represents several price points like 220 ------------- My tastes are simple: I am easily satisfied with the best |
Posted By: Hitesh Shah
Date Posted: 03/Aug/2009 at 4:30pm
Subu, if you plot Hawkins versus the Nifty or Sensex, I have a hunch there's very little correlation. So the chances of picking up this puppy due to a market correction are slim. ------------- |
Posted By: subu76
Date Posted: 03/Aug/2009 at 4:50pm
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Yup...that's what i noticed....
But hope for a better price is what keeps us ticking is'nt it?
Surely you don't want to jump into the melee when buyers are really euphoric
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Posted By: rapidriser
Date Posted: 03/Aug/2009 at 11:23pm
I am wondering if their latest results can be sustained. Performance is almost too good to be true.
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Posted By: subu76
Date Posted: 03/Aug/2009 at 2:08am
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It may not be this blistering.....but as it's revenues grow profits will probabily grow at a much faster clip as they are not spending a lot for this growth.....atleast so far. That is what i found very very attractive about this non cyclical company
The growth in profit margin tends to produce dramatic results....last year the margin moved from 5.2% to 7.5%. Imagine a 44% gain in Profit just from margin expansion....isn't this amazing...
Unfortunately...the stock may get screwed if MFs start buying.....
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Posted By: basant
Date Posted: 03/Aug/2009 at 9:05am
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Does anyone know their installed capaicty and what are they working at. Their financials do not show any significant capex.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: subu76
Date Posted: 03/Aug/2009 at 9:16am
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Yup, actually i have these numbers by heart.
Their installed capacity in cookers is about 3 times their current production.... (hence the low costs)
They have roughly 2 cr capex per year. That explains the increased margins. They also do some outsourcing.
This year though they plan to spend 7 cr...I am intrigued to see how they spend it...but they just collected 10 cr in the bank...so money is easily available....it does not impact the payout...
I donno what the managment meant when they said they are not being able to keep up to demand...because all said and done this is not a fast grower...it's a margin improveent story....
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Posted By: Vivek Sukhani
Date Posted: 03/Aug/2009 at 11:00am
The biggest driver for this company is nuclearisation of families. Another positive going for it is the rising aspiration of the masses. Yet the biggest positive for this company has been falling aluminium prices.
Now, dont get stumbled by seeing aluminium prices moving northwards. Companies actually make money during the period of rising RM prices. All in all, Hawkins at the moment has only positives to deal with. ------------- Jai Guru!!! |
Posted By: subu76
Date Posted: 03/Aug/2009 at 11:43am
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Strangely these guys managed to check raw material costs at 44% even during peak prices........This quarter falling prices really helped...... The other surprise for me is that TTK uses a lot more raw material as a % of sales than Hawkins...not sure what explains that
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Posted By: praveen
Date Posted: 04/Aug/2009 at 2:22pm
If you mean sales revenue then one simple explaination maybe that Hawkins may have some pricing power (expensive products) compared to TTK.
However if you are talking sales in quantity terms then I don't know. ------------- The quest for knowledge is a never ending Journey |
Posted By: subu76
Date Posted: 04/Aug/2009 at 4:01pm
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I'll check again...but the average per unit prices of TTK and Hawkins is almost same....last time i checked...
I guess the key is also in product mix.
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Posted By: prabhakarkudva
Date Posted: 06/Aug/2009 at 5:27pm
Dear Rapidriser , I sometime dont understand the reasoning above.Did you buy hawkins at 320 just for a 15-20% profit.If it was good at 320 ,it should still be good at 370.Also would one not have "averaged" if it went down 15-20%.Why dont people consistently average on both the sides? There are so many instances where we are about to buy some stock and next day its up 10% and we think,damn i missed the oppurtunity.In the next few days the stock goes up another 20-30% and we just end up watching. Dont fall prey to anchoring yourself to a price. ------------- Take your chances and keep them in a box until a quieter time. |
Posted By: rapidriser
Date Posted: 06/Aug/2009 at 6:17pm
I decided to buy the stock when it was at Rs.300 levels and was steadily accumulating it. It announced its quarterly results after Friday closing and jumped 15% on Monday opening. I was lamenting the fact that I could have bought it at a much lower price, if only I had bought it at one go instead of trying to average it out over some time.
And yes, as you mentioned, it has jumped to 400+ even as I was crying about the missed opportunity.
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