Sit back & have a Toilet Seat!

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%

$$Book value is 174 $$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

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