TTK Prestige - Q1 FY22 Result Report - YES Securities

(Rating: ADD, TP: Rs10,493, Upside: 14.2%)

- TTK prestige missed our revenue growth estimates on the back of extended lockdown in southern region, a key market for the company. Revenue growth was supported by e-comm channel which grew exponentially.

- Gross margins expanded 402bps yoy, as the company has been able to pass on increased input prices and has seen a change in product mix towards premium products. Company is witnessing increased share of revenue from newly launched premium products.

- Company has continuously been enhancing its distribution network across channels. TTKPT has added 7,000 outlets in FY21 despite Covid-related challenges. E-commerce share has increased to 32% in Q1FY22 vs 24% in Q1FY21.

- Working capital has increased in Q1 given higher inventory as company has not slowed down on manufacturing despite lower demand to avoid shortages later and has also stocked-up raw materials

- We expect FY21-24E Revenue/EBITDA/PAT CAGR of 16%/15%/16% and arrive at a PT of Rs10,493 based on 40x FY24 EPS as we roll forward our valuations to FY24E and maintain our ADD rating.

Shares of TTK PRESTIGE LTD. was last trading in BSE at Rs. 8782.5 as compared to the previous close of Rs. 9186.15. The total number of shares traded during the day was 998 in over 583 trades.

The stock hit an intraday high of Rs. 9252.85 and intraday low of 8658.05. The net turnover during the day was Rs. 8962196.

Source : Equity Bulls

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