Hawkins Cookers Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹7,801.00−₹56.00 (−0.71%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Hawkins Cookers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hawkins Cookers Limited manufactures, trades, and sells kitchenware in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees577

Annual revenue₹1,223 Cr

How does it make money?

Turns over ₹1,223 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 577 employees supports ₹2.12 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.12 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 37.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 29.5% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +24% while net margin moved +12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+24%

Margin effect+12%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

• P/E of 30.4x already prices in growth
✗ P/B of 9.26x is a steep premium to book

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

30.4x

Sector Median

68.5x

median of 3 sector peers

🟢Against its sector it trades 56% below the peer median of 68.5x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

68.5x median of 3 peers · -56%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.4x

PEG

2.66

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 14.1% to 15.8% over 3 years.
Debt is being paid down
Total debt is down 31% over 3 years.
High return on capital employed
ROCE of 37.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 34.3% to 29.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 43.0% to 37.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 6.60x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 37.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.1% to 15.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 56% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.60x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 7.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 34.3% to 29.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 14%✓ 15.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 7.3% CAGR
Latest reported year was 33.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹48 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 35%✓ 37.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹4,125 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.4x

Fair

Fairly valued against the generic band

P/B Ratio

9.26x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹256.49

Profitable

Profitable on a per-share basis

ROE

29.5%

Strong

Strong capital efficiency

ROCE

37.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.60x

High

High leverage

Revenue Growth (YoY)

33.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

17.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.79%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹48 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.2%

Average

Average margins

Net Margin

10.2%

Good

Strong bottom-line conversion

Current Ratio

2.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8005.4 / 8159.6

Bearish alignment (short < long)

RSI (14)

37.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹990 Cr	₹1,007 Cr	₹1,093 Cr	₹1,223 Cr	+7.3%
EBITDA	₹139 Cr	₹161 Cr	₹168 Cr	₹194 Cr	+11.5%
EBITDA Margin	14.1%	16.0%	15.4%	15.8%	—
PAT (Net Profit)	₹95 Cr	₹110 Cr	₹115 Cr	₹131 Cr	+11.4%
EPS	₹179.24	₹207.72	₹216.9	₹248.1	+11.4%
ROE	34.3%	32.9%	29.9%	29.5%	—
ROCE	43.0%	42.7%	38.6%	37.9%	—
Total Debt	₹42 Cr	₹31 Cr	₹23 Cr	₹29 Cr	-11.4%
Free Cash Flow	₹72 Cr	₹149 Cr	₹69 Cr	₹48 Cr	-12.6%

🟢 Revenue has grown at 7.3% a year over 3 years.

🟢 EBITDA has grown at 11.5% a year over 3 years.

🟢 EBITDA Margin has risen from 14.1% to 15.8% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 11.4% a year over 3 years.

🟢 EPS has grown at 11.4% a year over 3 years.

🔴 ROE has fallen from 34.3% to 29.5% over 3 years (-4.9 pts).

🔴 ROCE has fallen from 43.0% to 37.9% over 3 years (-5.1 pts).

🟢 Total Debt has shrunk at 11.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 12.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹688 Cr

Total Liabilities

₹243 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹88 Cr

Capex

-₹39 Cr

Shareholding (proxy)

Institutional Holding

16.3%

Insider Holding

56.9%

Corporate Actions

Dividend Rate

₹140

Ex-Dividend Date

22 Jul 2026

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 positive4 general

Is Hawkins Cookers the Best Stock in Its Sector? A Look at the Numbers

Univest, 16 Oct

Hawkins Cookers (HAWKINCOOK.NS) Eases to ₹7,956, Holding Above ₹7,558 Support - Institutional Volume

https://www.siam.in/, 13 Oct

Compare ACRYCIL. with HAWKINS COOKERS

Equitymaster, 12 Oct

Hawkins Cookers Board Recommends ₹140 Final Dividend Per Share Following 14% Profit Growth

Sahi, 04 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

HAWKINCOOK Stock Price and Chart — NSE:HAWKINCOOK

TradingView, 20 Apr

Hawkins Cookers FY26 net profit rises 14.4% to ₹131.19 crore

scanx.trade, 28 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Profitability

MiddlingBusiness Quality · Growth · Risk

WeakValuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑