Buy Hawkins with target of Rs 2050: Agarwal

Buy Hawkins with target of Rs 2050, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Hawkins with a stop loss of Rs 1800 and target of Rs 2050 on an intra-day basis. As we all know this company has strong brands like Hawkins and Futura. Futura brand is growing exceedingly well with increasing disposable income and nuclear families."
He further added, "The demand for company's products have grown tremendously in the last few quarters and this performance I believe is going to continue for next 4-5 years. In the last year first 2-3 quarters the performance was really bad because of base metal prices and all but in the fourth quarter the numbers were pretty good. They have shown 24% jump in PAT in March quarter, FY12 EPS is expected to be in the range of Rs 92-95 and the company has given 400% dividend in the last 2 years, which I believe is very good dividend because it is high cash generating business hence we recommend a buy."