Get­ting Its Steam Back

The Economic Times - - Markets & Finance -

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.

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