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ICICI Direct has buy call on with a target price of Rs 9760. The current market price of TTK Prestige Ltd. is Rs 8421.7.
TTK Prestige Ltd., incorporated in the year 1955, is a Mid Cap company (having a market cap of Rs 11470.31 Crore) operating in Consumer Durables sector. TTK Prestige Ltd. key Products/Revenue Segments include Domestic Appliances and Scrap for the year ending 31-Mar-2020.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 603.39 Crore, down -17.84 % from last quarter Total Income of Rs 734.37 Crore and up 42.12 % from last year same quarter Total Income of Rs 424.57 Crore. Company reported net profit after tax of Rs 85.36 Crore in latest quarter.
Investment Rationale
TTK in FY21 has aggressively expanded its distribution network by adding new outlets (especially in non-metro cities). It is further looking to enhance its distribution reach in tier-II, III cites to capture long term growth opportunities. The company has a healthy pipeline of ~120 SKUs to be launched in FY22E that would propel growth, going forward. Notwithstanding near term challenges, we expect TTK to bounce back rapidly as and when the impact of the pandemic is phased out. TTK, during FY21, has maintained its balance sheet strength with strong cash reserves (Rs 540+ crore), controlled working capital cycle days (~59 days) and healthy RoIC of ~30%. It expects TTK to sustain its revenue growth trajectory and build in revenue and earnings CAGR of 15%, 14%, respectively in FY21-23E. It reiterates BUY rating on the stock with a target price of Rs 9760 (43x FY23E EPS, earlier TP: Rs 8030).
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
TTK Prestige Ltd., incorporated in the year 1955, is a Mid Cap company (having a market cap of Rs 11470.31 Crore) operating in Consumer Durables sector. TTK Prestige Ltd. key Products/Revenue Segments include Domestic Appliances and Scrap for the year ending 31-Mar-2020.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 603.39 Crore, down -17.84 % from last quarter Total Income of Rs 734.37 Crore and up 42.12 % from last year same quarter Total Income of Rs 424.57 Crore. Company reported net profit after tax of Rs 85.36 Crore in latest quarter.
Investment Rationale
TTK in FY21 has aggressively expanded its distribution network by adding new outlets (especially in non-metro cities). It is further looking to enhance its distribution reach in tier-II, III cites to capture long term growth opportunities. The company has a healthy pipeline of ~120 SKUs to be launched in FY22E that would propel growth, going forward. Notwithstanding near term challenges, we expect TTK to bounce back rapidly as and when the impact of the pandemic is phased out. TTK, during FY21, has maintained its balance sheet strength with strong cash reserves (Rs 540+ crore), controlled working capital cycle days (~59 days) and healthy RoIC of ~30%. It expects TTK to sustain its revenue growth trajectory and build in revenue and earnings CAGR of 15%, 14%, respectively in FY21-23E. It reiterates BUY rating on the stock with a target price of Rs 9760 (43x FY23E EPS, earlier TP: Rs 8030).
(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
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