Accumulate TTK Prestige, target price Rs 885: Geojit

Geojit has accumulate call on TTK Prestige with a target price of Rs 885. The current market price of TTK Prestige Ltd. is Rs 788.4. Time period given by analyst is one year when TTK Prestige Ltd. price can reach defined target.

TTK Prestige Ltd., incorporated in the year 1955, is a Mid Cap company (having a market cap of Rs 10933.87 Crore) operating in Consumer Durables sector.

TTK Prestige Ltd. key Products/Revenue Segments include Domestic Appliances and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 710.88 Crore, down -7.76 % from last quarter Total Income of Rs 770.72 Crore and up 17.81 % from last year same quarter Total Income of Rs 603.39 Crore. Company reported net profit after tax of Rs 80.61 Crore in latest quarter.

Investment Rationale
Short-term demand and margin outlook has dimmed due to current sharp increase in inflation. However, long-term demand will be supported by GoI’s strong thrust to revive the economy, and TTK’s strong brand recall. The stock currently trades at ~31x 1Yr Fwd P/E. The brokerage values at 32x FY24E EPS (5Yr Avg=38) to arrive at a revised Target of Rs. 885 (Rs.975 earlier), downgrade to Accumulate rating.

Promoter/FII Holdings
Promoters held 70.41 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.3 per cent, DIIs 13.19 per cent.