StocksMarket.in

Hold TTK Prestige; target of Rs 6580: ICICI Direct

August 16
23:24 2019

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.

Outlook

We maintain HOLD rating and value it at Rs 6580 i.e. 35x P/E on FY21E EPS (earlier TP: Rs 6900).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.

Related Articles

Archives