Many investors stay invested in stocks for a very long period of time. This was especially true when demat accounts did not exist. A handful of shareholders hold shares in the physical form even now and are yet to get them dematerialized. These shares have probably witnessed a multifold increase in their share price.
One such stock is Hawkins Cooker Ltd, whose share price increased from ₹ 19.80 apiece to ₹ 6,690.00, logging 33687 percent gains. Therefore, if an investor had invested ₹ 1 lakh in the company’s stock twenty years ago, the value of their holdings would have been ₹ 3.37 crores today!
Hawkins Cooker is listed on the Bombay Stock Exchange (BSE). The company is engaged in the manufacturing, trading and selling of kitchenware. Its share price increased by 23 percent in the past year and by 143 percent in the past five years.
The company’s board in its meeting held on May 24, 2023, recommended the payment of a dividend of ₹ 100 per equity share of the face value of ₹ 10 each, i.e., 1000 percent. This dividend is subject to the approval of the shareholders at the company’s ensuing AGM on August 09, 2023. It shall be paid by September 08, 2023.
With a market capitalization of ₹ 3,538 crores, Hawkins Cookers is a small-cap company. It has a high return on equity of 38.74 percent and an ideal debt-to-equity ratio of 0.15. Its shares were trading at a price-to-earnings ratio (P/E) of 37.33, which is higher than the industry P/E of 14.20, indicating that the stock might be overvalued as compared to its peers. It has a dividend yield of 2.39%.
The company’s promoters hold a 56.03 percent stake in it followed by retail investors with 26.44 percent, mutual funds with 17.16 percent, foreign investors with 0.36 percent and other domestic institutions with 0.01 percent.
Written by Simran Bafna
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