Buy TTK Prestige, target price Rs 1120 : ICICI Direct

ICICI Direct has buy call on TTK Prestige with a target price of Rs 1120. The current market price of TTK Prestige is Rs 794.

TTK Prestige, incorporated in the year 1955, is a Mid Cap company (having a market cap of Rs 11039.91 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 850.90 Crore, up 33.82 % from last quarter Total Income of Rs 635.86 Crore and down -1.81 % from last year same quarter Total Income of Rs 866.55 Crore. Company has reported net profit after tax of Rs 84.49 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 30-09-2022, the company has a total of 14 Crore shares outstanding.

Investment Rationale
The brokerage expects gross margins to decline 260bps YoY to 39.8%. Absolute EBITDA is expected to remain flat YoY at Rs 126 crore. Owing to higher other income, the brokerage expects PAT to increase 3% YoY to Rs 91 crore.

Promoter/FII Holdings
Promoters held 70.41 per cent stake in the company as of September quarter while FIIs owned 0 per cent and DIIs 13.94 per cent.