Hawkins Cookers is the second-largest manufacturer of pressure cookers in the country. The performance of the business in FY21 was quite resilient despite the COVID disruptions and included revenue growth of 14 percent in FY21, despite a weak performance in the first half of the last fiscal year.
The Q1 performance of FY22 was again impacted by the COVID-second wave but the business has made a strong comeback in Q2 and reported top-line growth of 37 percent over last year.
The performance on the margins front also has been quite stable, which again is quite positive and the company is maintaining its margins in the range of 14 to 16 percent despite the continuous spike in aluminium prices.
The company at present does as a topline of Rs 819 crore with net profit of Rs 80-90 crores and this figure can actually double in the next three to five years as a company is gaining market share across regions, especially in the rural areas.
More importantly, the company is looking forward to diversify its presence away from the pressure cooker market and has launched an array of new products in the cookware market, which should again drive the topline of the company in the next few years. The stock has been a very steady performer in this bull market and the company still trades at reasonable valuations of around 30 times FY23 estimated earnings.
Long-term investors for a defensive play can look forward to accumulating this high-quality stock on every decline, says Sachin Pal of moneycontrol.com.
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.