Maheshwari's view on Hawkins Cooker

Hawkins Cooker has entered into long term agreement with a leading aluminium producer in India. The purchase quantity is significantly higher than what they did last year, says Basant Maheshwari, Investor & Founder, TheEquityDesk.com.

Maheshwari told CNBC-TV18, "Hawkins is a commoditized business many would say but what is happening is they sell their pressure cooker at Rs 850 on an average whereas the unorganized segments sells at Rs 350. So as the market shifts because of breakup of joint family system, higher disposable income, earlier you had just one cooker in your room, now you have five cookers of different sizes. There is a cookware brand - the Futura which is growing even faster. So what happens is - over a period of time these companies like Hawkins implies about Rs 60-65 crore of capital and creates about Rs 330 crore of revenues. So low capital, high revenue, high return on capital, 80-60-70% return on net worth, throws back cash at the shareholders - 60% is payout. Last year they paid Rs 40 dividend.