Firstcall Research has recommended a buy rating on Hawkins Cooker , with price target of Rs 820, in its report dated February 27, 2010. The stock closed at Rs 740 on March 2, 2010.
"At the market price of Rs 719.90, the stock is trading at 9.24 x and 8.15 x for FY10E and FY11E respectively. On the basis of EV/EBDITA, the stock trades at 6.50 x for FY10E and 6.32 x for FY11E. Price to book value of the company is expected to be at 5.60 x for FY10E and 3.32 x for FY11E respectively. EPS of the company is expected to be at Rs 77.92 and Rs 88.35 for the earnings of FY10E and FY11E respectively. The company's top line and bottom line are expected to grow at a CAGR of 17% and 61% over FY08 to FY11E. The Company operates in a single segment, manufacture, trading and sale of Kitchenware. The company continued its efforts on product development with more emphasis on research and development activity. The company has declared a dividend of Rs 20 per Equity Share for the year ended March 31, 2009. We recommend 'BUY' with a target price of Rs 820 for medium to long term," says Firstcall Research report.
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