Target: ₹745
CMP: ₹622.20
TTK Prestige (TTKPT) revenue grew 4 per cent y-o-y (2.1 per cent higher than estimates). Demand revival for domestic kitchen appliances and higher exports has resulted in better than estimated revenue growth. On the channel front all channels have performed well with e-commerce and modern retail faring better. Impact of slowdown in rural channel will not be much as dependency on rural channel has reduced substantially.
Gross margins at 42.2 per cent continues to remain healthy, while EBITDA margins were impacted on higher other expenses which includes some soft operational expenses. Margins are expected to remain subdued for next couple of years as higher expenses targeted to achieve growth is expected to continue for next 8 quarters.
TTKPT has chalked out the growth strategy where it will be aggressively focusing on launching new innovative products which has been lacking by the company. The company is significantly looking to expand its Judge brand to mass market to focus on the volume at lower price point. On the market share front the company has started to regain share in cooker and cookware segment and now with more thrust on Judge brand company can continue to gain share further.
We continue to value the company at 40x on FY27 EPS resulting in PT of ₹745 and downgrade to Add on lower margin profile.
Published on May 29, 2025
