Hawkings Cooker profit margin mainly depends on the aluminium. Over the last five years, aluminium prices in India have seen significant fluctuations, driven by various global factors.
2021-2022: used to trend around 3000-3500 USD (OPM dropped to 12-13%)
2023-2024: around 2200USD (picked up to 15%)
Let’s see if we see any improvement in the OPM going forward. It is a very crowded industry with many unorganized players, so improvement won’t be great.
Key triggers-
- Operative leverage may start to play a role in this counter. The next two to three quarters are going to be interesting!
- The Company has increased distribution to nearly 10,000 direct dealers.
- 43 people who have joined management in the last six months
- Launching new electrical appliances to keep up with the trend. Company was one of the early moovers, but could not survive in this portfolio- They s had launched electrical products in 1981 – but they were far ahead of their time – the products were reliable; the electricity supply was not. Lets see this time management can do some wonders!
All these are my views. Biased and invested!
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