Getting Its Steam Back
Sometimes long-term investments in equities can be rewarding. Hawkins Cookers is one such stock. On Tuesday the company announced dividend per share of ` 60, which is four times its stock price ten years ago and slightly less than half the stock price five years ago. After the company’s stock becoming tenfold from FY09 to FY11, it went through a rough patch between FY11 and FY13 as it witnessed shutdowns due to labour issues at its various plants in the states of Uttar Pradesh and Maharashtra. This led to the company losing its market share in the pressure cookers category to its rival TTK Prestige. Hawkins’ stock has underperformed its peers since then. However, the company has managed to overcome these issues and is showing improvement in its earnings growth. For FY14, its profit grew by 13% as compared to a 20% decline in TTK Prestige’s profit. With growth coming back and with higher than expected dividend, Hawkins’ stock closed at ` 2,560, 19% above the previous day’s close.