Hold TTK Prestige; target of Rs 6580: ICICI Direct
ICICI Direct’s research report on TTK Prestige
TTK Prestige reported a moderate set of numbers, with numbers coming in below our estimates across all parameters. The management attributed the weak growth to a slowdown in rural demand coupled with delayed monsoon and absence of institutional order in Q1FY20. Revenue grew 3.5% YoY to Rs 433.6 crore, with cookers segment declining 7% YoY. Excluding the institutional order and rural sales (7-8%), the underlying growth for the quarter was at 17%. On account of negative operating leverage, EBITDA margins declined 20 bps YoY to 13.0%. Following the weak operational performance, PAT grew a mere 1.6% YoY to Rs 36.5 crore.
We maintain HOLD rating and value it at Rs 6580 i.e. 35x P/E on FY21E EPS (earlier TP: Rs 6900).
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