Bye Bye Fiscal Stimulus...!!

With the Indian economic growth back on track the ministry feels that the it is the time to withdraw the duty cuts offered last year. This could have a negative effect on industries across the board, especially the likes of Steel, Automobile and Cement because of a reduction in the demand owing to an increase in the excise duty.

Moreover an increase in the excise duty would also increase the general price level in the economy which would worsen the inflation situation.

Thus, this gives one more reason for one to remain cautious and not to take euphemistic long positions in the market based on the views of the SO called experts on TV, since they will only make money if they get advertisement revenue, which in turn depends on increased number of retailers watching the business channels and retailers only watch business channels in the time of a market boom and not in the adverse times.

One can still start SIP investment in the stocks I have already mentioned many a times: Hawkins, Crest Animation, Infoedge India and Zicom and avoid chasing the rate sensitives and completely ignore the BUY ON DIPS advice.

Happy Investing.

Hawkins Post Stunning Q3 Results: Maintain BUY

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

Summary: