🧾 At a Glance
Hawkins isn’t just a cooker brand — it’s practically a household heirloom. In the last 5 years, it has:
- Grown profits from ₹81 Cr to ₹115 Cr
- Maintained 14–15% operating margins consistently
- Launched 92 new products in FY22–FY23
- Opened a fourth factory in Jaunpur in FY25
- Announced a whopping ₹130 per share dividend in FY25
While the stock isn’t moving like a Cello IPO, Hawkins is pressure-cooking quietly — consistent ROE, minimal debt, and steady compounding.
🍲 About the Company
- Founded in 1959, Hawkins Cookers Ltd manufactures and sells kitchenware — flagship being pressure cookers.
- Product range includes: Cookers, Tava, Fry Pans, Handis, Bowls, Stewpots, Saucepans
- Sells across India and 40+ international markets
- Operates four manufacturing plants — the newest one opened in Jaunpur, UP in FY25
👨🏭 Promoters & Ownership
| Category | % Holding (Mar 2025) |
|---|---|
| Promoters | 56.03% |
| FIIs | 2.86% (up from 0.2% in FY23!) |
| DIIs | 15.43% |
| Public | 25.68% |
No pledge. No dilution. Just long-term believers, compounding quietly in their kitchens.
📊 5-Year Financial Performance
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROCE % | EPS (₹) | Dividend (₹/share) |
|---|---|---|---|---|---|---|
| FY21 | 768 | 81 | 14% | 57% | 152.50 | 80 |
| FY22 | 958 | 84 | 12% | 50% | 158.65 | 150 (special) |
| FY23 | 1,006 | 95 | 13% | 46% | 179.24 | 100 |
| FY24 | 1,024 | 110 | 15% | 45% | 207.72 | 120 |
| FY25 | 1,116 | 115 | 14% | 41% | 216.90 | 130 |
🧮 5-Year Profit CAGR: 10%
📦 5-Year Sales CAGR: 11%
💰 Average Dividend Payout: 58%
🍳 Zero debt — it runs entirely on profits and retained earnings.
🏭 Business Updates
- Product Innovation: 39 products launched in FY22, 53 in FY23
- New Jaunpur Factory (FY25): Expansion aligned with long-term demand uptick
- Exports Growing: Revenue mix shifting gradually toward export-friendly cookware variants
Despite limited marketing spend, Hawkins maintains brand dominance via:
- Word of mouth
- Durability-led loyalty
- Cultural trust
💰 Balance Sheet (FY25)
| Metric | Value |
|---|---|
| Net Worth | ₹383 Cr |
| Total Assets | ₹584 Cr |
| Borrowings | ₹23 Cr |
| Fixed Assets + CWIP | ₹107 Cr |
| Cash from Operations | ₹102 Cr |
| Capex Spend | ₹27 Cr |
With ₹130/share dividend and ₹102 Cr of cash flow, Hawkins is cash-generating royalty.
📦 Operating Metrics
| Metric | Value (FY25) |
|---|---|
| OPM % | 14% |
| ROCE % | 41% |
| ROE % | 32% |
| Inventory Days | 102 |
| Cash Conversion Cycle | 68 days |
📦 Working capital management is tight. Inventories are stable, debtor days remain under 20.
🧮 Fair Value Estimate (FY26–27)
| Assumption | Estimate |
|---|---|
| EPS FY26 (Est.) | ₹230–₹240 |
| P/E Range | 35x–40x |
| 🎯 Fair Value Range | ₹8,050 – ₹9,600 |
CMP: ₹7,945 — The stock is not cheap, but you’re buying quality, trust, and near-monopoly brand power in the cooker niche.
🔍 EduInvesting Take
Hawkins is the Maruti of the kitchen.
- Doesn’t innovate too fast — but never breaks down.
- Customer loyalty? Unmatched.
- Dividend machine? Absolutely.
- Valuation? Well, you pay premium for trust.
Despite muted sales growth, it delivers profit consistency like your grandmother’s dal — predictable, comforting, and just the right level of spicy.
⚠️ Risks & Red Flags
- 🚨 Low volume growth — sales growth just ~11% over 5 years
- 📦 High inventory cycles (~100 days) — seasonal sales patterns can cause pile-up
- 📈 Stock trades at 11x book value — expensive by traditional manufacturing standards
- ⚠️ Intense competition from cheaper cookware brands and online-first players
📊 TL;DR Summary
- 🏭 India’s top pressure cooker and cookware brand
- 💰 Profit of ₹115 Cr on ₹1,116 Cr revenue in FY25
- 🚀 ROCE 41%, OPM 14%, EPS ₹216.9
- 🧧 Dividend of ₹130/share — consistently generous
- 📉 Slow but steady growth — built for long-term compounding
If you’re looking for a multibagger, go elsewhere.
If you’re looking for dividend + durability, Hawkins could be your lifetime SIP — in cookware and in compounding.
Tags: Hawkins Cookers, pressure cooker stocks, dividend kings, FMCG kitchen stocks, Wadia Group, Jaunpur factory, EduInvesting 5-year recap
Author: Prashant Marathe
Date: 12 June 2025
