This stock dominates Indian sanitaryware space

Ashish Kacholia has more than doubled his stake in the company, now holding 2.7 per cent stake.

The shares of Hindware Home Innovation Ltd surged 3.37 per cent and closed trading at Rs 392.05. The stock opened at Rs 378.05 and made an intraday high and low of Rs 418.75 and Rs 378.05, respectively. The company has a market capitalisation of Rs 2834 crore and the stock is trading at a PE multiple of 27.28x.   

Hindware Home Innovation Ltd is involved in the business of building products and consumer appliances. Its building products portfolio includes sanitaryware, faucets, plastic pipes & fittings, and premium & super-premium tiles. While, its consumer appliances portfolio consists of chimneys, cooktops, dishwashers, built-in microwaves, water purifiers, air coolers, ceiling & pedestal fans, kitchen & furniture fittings, and a range of water heaters and room heaters.   

Among Indian sanitaryware companies, the company has the widest network. In FY21, despite the impact of Covid-19, the company's total revenue increased by about 10 per cent, with sales of Rs 1788 crore compared to Rs 1633.41 crore in FY20. This shows the resilience of the business.   

For Q1FY23, on a consolidated basis, the company revenue stood at Rs 714.8, representing a YoY growth of 15.91 per cent. However, for the same quarter, the net profit declined YoY by 35 per cent and came in at Rs 15.51 crore.  

As per the FY22 period ending, the company has an ROE and ROCE of 27.8 per cent and 22.3 per cent, respectively.  

About the shareholding pattern, 51.32 per cent of the company’s stake is owned by the promoters, 3.02 per cent by FIIs, 6.34 per cent by DIIs, and the rest 39.32 per cent by non-institutional investors.