Butterfly Gandhimathi Stock Analysis

English Video

Hindi Video

Butterfly Gandhimathi Appliances Detail

Butterfly Gandhimathi Appliances is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Home Appliances sector.

As per the Company website it is the flagship company of the Butterfly group.The Group was the first in India to introduce Stainless Steel Pressure Cookers, Stainless Steel LPG Stoves and Unbreakable Stainless Steel Vacuum Flasks.

The product range from the Company are

• Kitchen Appliances
  
  • Mixer Grinder, Table top wet grinder
  • LPG Stove
  • Pressure Cooker, Electric Rice Cooker
  • Juicer, Hand Blender, Chimney, Power Hob
  • Pop Up toaster, Sandwich maker, Water kettle
• Home Appliances
  
  • Water Heater
  • Electric Fans
  • Air Coolers
  • Electric Iron
• Cook and Serve
  • Stainless Steel
  • Non-Stick

The Company also exports to several countries, including the United States of America, Mauritius, Srilanka, Japan and United Arab Emirates.All of its showroom are present in South India namely Chennai, Bengaluru and Puducherry.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Butterfly Gandhimathi Appliances Stock Performance

The Stock is a multi baggar. It has given close to 40 times return in above long term price graph. Majority of price action came between year 2009 and 2014. That time stock touched 400 mark from sub 20 levels giving excellent returns to investors.

As you can see the stock consolidated for three years near 200 mark. There was only minor price movement during this phase. It then zoomed past 600 mark and then again touched 200 mark. The 150 and 200 price gap is strong support zone for this stock. So if you are willing to trade this stock then you should keep this in mind.

The stock is trading in its support zone area as of now. The only negative aspect is that stock does not have regularity while paying dividend.

Butterfly Gandhimathi Appliances My Opinion

Butterfly Gandhimathi Appliances is a Home Appliances Company. Home appliances like Cooking utensils and other similar kitchen items are will in demand. The growing population of India will have demand for these products in near future as well. You can think of this segment as evergreen segment.

As of this writing the Kitchen ware segments like Pressure Cooker and Rice Cooker or other similar items are largely dominated by unorganized players (mostly small local players) who have cost advantage.

Companies have growing market to tap on. The rural population still does not have these items and it is considered luxury items. So there is huge potential in this sector once rural economy performs well and people have spending power.

I have not invested in this sector but there are good companies in this niche. I am planning to compare companies in this sector and then come up with my decision around them. I will be tracking this Company along with others so that I can make a decision.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.