Brand and Business Back ground : Hindware Industries Limited
Brand value – Good and reputed brand value , Fortune Top 500 companies in India ( 2018)
Segments – Building Products Division (BPD), Consumer Products Division (CPD), Retail Division and Packaging Products Division (PPD)
“Line of Business – Sanitary Ware, Soft Furnishings ,Modular Furnishings ,Pet Bottles production ,Luxury Bathrooms.
| Share Holding Pattern |
| Promoter – 54% – |
| FII – 3.15% – FII Increase Holding Quarter over Quarter |
| DII – 4.55% – DII Decrease Holding Quarter over Quarter |
| Public – 38.30% |
| Recommendation : Buy |
| Buy Price Range ; 75-79 |
| Target – 105 |
| Time Frame – 6 months ( March 2021) |
| Upside potential – 40% |
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| Benefits | Concerns | ||
| $$ | Book value is 174 | $$ | Low Interest coverage ratio ( but operationally strong ) |
| $$ | Highest ever Quarterly EPS in last 4 years | $$ | Price hasn’t seen significant increase despite of being a good stock in this sector. |
| $$ | Business strongly correlated to both Luxury housing market which is picking up significantly | $$ | Volatile operational cashflow in last 4 years indicates something is still to be figured out by the business in terms of stable operational income. |
| $$ | Diversified décor business and strong brand value | ||
| $$ | Good channel sales distribution in India | ||
| $$ | Expected reduced Fixed operational expense due to tech advnacement and remote work culture. | ||
| $$ | 77% dividend payout ratio |
Company has already reached 40% of its 2020 sales in last two Quarters and my expectations are that company will give at least 10% to 15% growth in the sales revenue. This is mainly due to the focus on inwards sales in India