For some reason, everyone had assumed that Hawkins Cookers would report blockbuster Q3FY15 results and that the stock would coast in an upward trajectory.
One could see this in the mood at the Hawkins counter in MMB. Until yesterday, the mood was upbeat and everyone had a spring in their step. “Kuchh bhi karlo maal milane wala nahi hai” one punter declared confidently while another cheerfully added “yeh hawkins ek din marvaega. hold tight though. results should be good.”
However, everything changed in the afternoon when the results were announced. Suddenly, there was a deathly silence in the air. The punters couldn’t believe their eyes. The results were pathetic with a flat top line and a PAT which was down by a whopping 53%.
| Hawkins Cookers Quarterly Results | |||
|---|---|---|---|
| Particulars (Rs cr) | Dec 2014 | Dec 2013 | %Chg |
| Net Sales | 112.53 | 111.45 | 0.97 |
| Other Income | 0.69 | 1.26 | -45.24 |
| Total Income | 113.23 | 112.7 | 0.47 |
| Total Expenses | 107.12 | 101.38 | 5.66 |
| Operating Profit | 6.11 | 11.32 | -46.02 |
| Net Profit | 3.07 | 6.52 | -52.91 |
| Equity Capital | 5.29 | 5.29 | – |
For a stock quoting at a P/E of nearly 60x TTM earnings, this is simply unacceptable.
Within seconds, the stock price plummeted like a ton of bricks as everyone rushed to sell while they could. After touching a low of 18.29%, the stock settled 15% down, on heavy volumes.
The ones who were not fast on the trigger were left in the lurch. “yeh kya ho raha hai, koyi Bathayega?????” one punter wailed pitifully but there was no one to console him. They were busy nursing their own losses.
Dolly Khanna’s sixth sense had bailed her out again. At one stage, Hawkins was her largest holding and she was Hawkins’ largest individual shareholder. However, her instinct warned her to get out when she saw that Hawkins was not able to get its act together despite several opportunities. She slowly eased out of the stock, quarter by quarter, and entrusted her wealth to newcomers like Cera, RS Software, Avanti Feeds etc, who are full of vigor and eager to please.
This is also a testing time for Basant Maheshwari because he has declared Hawkins Cookers as his Stock Pick For 2015. Basant has given solid logic to support his hypothesis such as high ROE, strong brands, immense demand potential, debt-free status, high dividend payout etc, etc.
However, unless Hawkins girds its loins and shows its mettle in the market place, the multi-bagger gains that its devoted shareholders are fantasizing about will remain elusive.
Whether Hawkins has the fire in its belly to make the cut is the million dollar question now.
Maybe you could do an article sometime with Dolly Khannas current holidings she has shuffled her portfolio quite a bit now … 🙂 Cheers!
NEED OF THE HOUR IS PUT A ARTICLE ON BASANT VIEW ABOUT HAWKINS RESULTS
Naresh,
Basant ji and his Army of Supporters are busy fighting on Twitter with D.Muthukrishnan @DMUTHUK on a subject weather Basan’t stocks really returned 65% CAGR for the last 10 years.
need of the hour is for SEBI to investigate these guys for insider trading
you are right.
why these big guys keeps shouting BUY THIS BUY THAT ,gives free buy advice & disappears when small investors really need advice after bad results & most of advices on this blog also about buy calls. blog that cautions bad management & bad results suspicious activity will benefit more to small investors
If you have time check Basant’s Twitter to understand what he is upto 🙂
Basant ji and his Army of Supporters are busy fighting on Twitter with D.Muthukrishnan @DMUTHUK on a subject weather Basan’t stocks really returned 65% CAGR for the last 10 years.
Probably Arjun could help us to know the truth!!!
Quite funny!!!
Bhs
neither arjun nor basant will help i think , as far as arjun is concerned , he is busy in searching another big guys buy trade & basant is looking for another tv show
LOL. The last line was hilarious.
hahahaha…good one
This is what comes of following the so-called experts blindly. They always tell you what they bought not when and what they sold!
fully agree with you
does anybody whats BM’s view on the stock after the result?. in the past, he never gave a hold/sell reco at any point. he found something positive after every poor results. its surprising because he looks for 25+% growth companies. i wonder if his view has changed now.
Ego can kills anyone.
Even though Basant has performed well, he can’t be guru in investment with such gutter chaap attitude. He looks more like politician on tweeter, have seen first confluence who openly market his book for every book reader’s word of praise.