Buy TTK Prestige, target price Rs 975: Geojit

Geojit Financial Services has buy call on TTK Prestige with a target price of Rs 975. The current market price of TTK Prestige Ltd. is Rs 790.25. 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 10979.62 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 31-12-2021, the company reported a Consolidated Total Income of Rs 770.72 Crore, down -11.06 % from last quarter Total Income of Rs 866.55 Crore and up 4.95 % from last year same quarter Total Income of Rs 734.37 Crore. Company reported net profit after tax of Rs 90.70 Crore in latest quarter.

Investment Rationale
GoI’s strong thrust to revive the economy and ongoing vaccination will support demand. TTK has strong balance sheet and brand recall. The stock currently trades at ~37x 1Yr Fwd P/E. We value at 35x FY24E EPS (3Yr Avg=38) to arrive at a revised Target of Rs. 975 (Rs.1,225 earlier), but upgrade to Buy due to recent correction in stock price and strong margins.

Promoter/FII Holdings
Promoters held 70.41 per cent stake in the company as of 31-Dec-2021, while FIIs owned 9.57 per cent, DIIs 13.09 per cent.