Earnings Update - TTK Prestige (TTKPT IN) - Results in-line with expectation - CSEC Research

Results in-line with expectation

- Standalone Revenue grew 21.8% YoY and -14.5% QoQ at INR 3.66bn. Domestic business grew 23% YoY to INR3.72bn (gross sales) and exports de-grew by 14% YoY to INR 106.4mn (gross sales). Consumer sentiment in the Domestic market has started showing improvement from Feb 2017.

- Value added products did well during the quarter; premium products grew well compared to mass market product.

- Strong growth was witnessed across segment; Cookers grew by 28% YoY to INR 1,410mn and Cookware grew by 33% YoY to INR 650mn. Appliances grew 17% YoY to INR 1,620mn and other segment de-grew 6% YoY to INR 150mn.

Valuation: At CMP, the stock is trading at 48.4X and 39X to FY18E & FY19E earnings respectively. We maintain SELL rating on the stock a target price of INR 5,160 valuing the stock at 30X FY19E earnings.

Risks: Stronger than expected recovery in the consumer sentiment and low competition in the traditional segment.

Shares of TTK PRESTIGE LTD. was last trading in BSE at Rs.6726.3 as compared to the previous close of Rs. 6738.2. The total number of shares traded during the day was 22718 in over 36 trades.

The stock hit an intraday high of Rs. 6757.2 and intraday low of 6715. The net turnover during the day was Rs. 153117865.

Source : Equity Bulls

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