Hawkins Cookers Limited came out with its Q3FY10 results on 29th January. The net sales stood at Rs 75.6 crore, up by around 22% (YoY) and net profit of Rs 11.68 crore, up by an whooping 245%. This is a third consecutive quarter where the company have posted a 3 digit earnings growth.
Result Highlights:
- EBITDA for Q3FY10 stood at Rs 17.84 crore vs Rs 5.58
- cr , a y-o-y increase of 220% while EBITDA margins
- stood at 23.60% an increase of over 1400 bps, YoY
- This was mainly on account of an outstanding operating performance, where the
- company witnessed a decline in its operating
- expenses in every vertical be it raw materials ,
- employee costs, other expenditure & traded goods
- The company managed to cut down its operating
- expenses even without any gain on its inventory which
At the current market price of around 744, the stock is
trading at a trailing 12 month P/E of around 11, despite its
earnings growing at an average of around 125% over the
last four quarter. Given its dividend payment track record of
around 50% payout ratio and its 9months EPS of around 54,
we expect the company to deliver a full year EPS of around
75 and to payout a dividend of around 37.
Thus the maintain its average 5 year dividend yield of
around 4% I maintain a BUY on the stock with a one
year target of around 925 and it should be added on any dips.
Happy Investing..
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