Buy TTK Prestige, target price Rs 1000: ICICI Securities

ICICI Securities has buy call on TTK Prestige with a target price of Rs 1000. The current market price of TTK Prestige is Rs 779.15.


TTK Prestige, incorporated in the year 1955, is a Mid Cap company (having a market cap of Rs 10796.65 Crore) operating in Consumer Durables sector.

TTK Prestige key Products/Revenue Segments include Domestic Appliances and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 708.09 Crore, down -16.78 % from last quarter Total Income of Rs 850.90 Crore and down -8.13 % from last year same quarter Total Income of Rs 770.72 Crore. Company has reported net profit after tax of Rs 58.39 Crore in latest quarter.

The company’s top management includes Mr.T T Jagannathan, Mr.Arun K Thiagarajan, Mr.Dhruv Sriratan Moondhra, Mr.Murali Neelakantan, Dr.T T Mukund, Mr.Dileep Kumar Krishnaswamy, Mr.R Srinivasan, Mr.K Shankaran, Mr.Chandru Kalro, Mr.T T Raghunathan, Dr.(Mrs.)Vandana R Walvekar. Company has PKF Sridhar & Santhanam�LLP as its auditors. As on 31-12-2022, the company has a total of 14 Crore shares outstanding.

Investment Rationale
The brokerage models TTK to report revenue and earnings CAGRs of 11.2% and 8.7% over FY22-FY25E with mid-single digit volume growth, distribution expansion and market share gains from unorganised sector. ICICI Securities revises its earnings estimates downwards to factor in 9MFY23 results.

Promoter/FII Holdings
Promoters held 70.41 per cent stake in the company as of 31-Dec-2022, while FIIs owned 8.84 per cent, DIIs 13.57 per cent.