Buy TTK Prestige, target price Rs 1,150: ICICI Securities

ICICI Securities has buy call on TTK Prestige with a target price of Rs 1,150. The current market price of TTK Prestige is Rs 985.15. Time period given by analyst is one year when it's price can reach defined target.

TTK Prestige, incorporated in the year 1955, is a mid cap company (having a market cap of Rs 13634.77 crore) operating in consumer durables sector.

It's key products/revenue segments include domestic appliances and scrap for the year ended March 31, 2022.


Financials
For the quarter ended June 30, 2022, the company has reported a consolidated total income of Rs 635.86 crore, down 10.55 per cent from last quarter total income of Rs 710.88 crore and up 55.33 per cent from last year same quarter total income of Rs 409.35 crore. Company has reported net profit after tax of Rs 54.06 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 June 30, 2022, the company has a total of 14 crore shares outstanding.

Investment Rationale
The brokerage models TTK Prestige to report revenue and PAT CAGRs of 14 per cent and 10.7 per cent overFY22-FY24E and RoE of >16 pr cent over FY22-24. At our revised DCF-based target price of Rs1,150, implied P/E works out to 43x FY24E EPS. Maintain BUY.

Promoter/FII Holdings
Promoters held 70.41 per cent stake in the company as of June 30, 2022, while FIIs owned 8.92 per cent, DIIs 13.5 per cent.