Hawkins Cookers heats up on good dividend yield

Hawkins Cookers jumped 8.99% to Rs 184.20 at 10:51 IST on BSE after the company’s board of directors recommended a liberal dividend of Rs 10 per share in a board meeting held on Monday, 26 May 2008

The company made this announcement before market hours today, 27 May 2008. At the current market price of Rs 184.20, the dividend yield works out to 5.43%. Dividend is tax-free in the hand of shareholders.

The company has been consistently paying high dividend over the past couple of years, in an attempt to reward shareholders. The company paid dividend of Rs 3 per share FY 2005, Rs 5 per share FY 2006 and Rs 7 per share FY 2007.

The stock hit a high of Rs 191.50 and a low of Rs 179.90 so far during the day. The stock had a 52-week high of Rs 248.90 on 9 January 2008 and a 52-week low of Rs 90.50 on 28 May 2007.

The company’s current equity is Rs 5.29 crore. Face value per share is Rs 10.

The current price of Rs 184.20 discounts its Q4 March 2008 annualized EPS of Rs 27.15, by a PE multiple of 6.78.

Hawkins Cookers is a leading manufacturer of cookers. The company has an extensive product range consisting of pressure cookers, cooker accessories, non-stick cookware, cuisinettes and satilon cookware.

The company reported 19.30% rise in net profit to Rs 3.59 crore on 2.70% growth in net sales to Rs 60.24 crore in Q4 March 2008 over Q4 March 2007.