TTK Prestige Ltd. share price target

Demand outlook is positive given ongoing vaccination and strong thrust of GoI to revive the economy. We value TTK at 42xDec 2023E EPS. Highest ever sales in volume and value. Q2FY22 consolidated revenue grew by 35%YoY (114%QoQ) to Rs.859cr being the highest ever quarter sales aided by strong growth across channels along with price hike (hiked by 5%-8% in July to pass on input price increase). Demand was strong driven by stocking requirement of channels ahead of Q3 festive season. E-Com channel maintained its strong position that gained in the last year during Covid period, but...

It continues to be a market leader in the cooker segment and has material share in other appliance and cookware categories The company, over the years, has maintained its balance sheet strength with strong cash reserves (~| 500+ crore) and healthy RoIC of 30%+ Q2FY22 Results: Reported superior operational performance with strong beat on revenue front. Demand for domestic kitchen, home appliance was robust in Q2...

Q1FY22 consolidated revenue grew by 77%YoY aided by lower base (-51% in Q1FY21) but de-grew by 33% sequentially as most part of the quarter was hit by lockdowns. ECom sales growth continued to be strong, and the revenue mix increased to 32% from 24%YoY (14% in FY20). Business resumed to reasonable levels from early June 2021. TTK has introduced 21 new SKUs during the quarter and has slated the launch of ~120 SKUs in FY22 (127 in FY21). The company has almost doubled its capacity in Cooker segment. FY22 capex plan is ~Rs.70cr. In FY21, the company has significantly expanded its distribution network in high growth areas, added more than 2000 outlets. All these initiatives will support market share gains and future growth. We expect...

Background: TTKPT broadly operates under 3 major segments - Pressure Cooker & Pans, Non-stick Cookware and Kitchen Electric Appliances. TTKPT enjoys high brand recall and they spend ~7.2% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. TTKPT has a market share of ~60% in the outer-lid pressure cooker, ~15% in inner-lid pressure cooker within the organized market and in...

It continues to be market leader in the cooker segment and has material share in other appliance and cookware categories Over the years, the company has maintained its balance sheet strength with...

Second wave of Covid-19 is likely to impact in the near-term, but longterm-demand outlook is positive given ongoing vaccination and strong thrust of GoI to revive the economy. We value TTK at 42xFY23E. Significant distribution expansion will support future growth. Q4FY21 consolidated revenue increased 43%YoY aided by revival across all categories & channels along with price hike (5%-19%). The core segments, Pressure Cooker and Cookware grew by 49% and 67%YoY respectively while Kitchen appliances grew by 34%YoY. E-Com sales growth continued to be strong and the revenue mix increased to 19% from 14% in FY20 (16% in Q3FY21). MFI (Micro Finance) routed sales were very...

Background: TTKPT broadly operates under 3 major segments - Pressure Cooker & Pans, Non-stick Cookware and Kitchen Electric Appliances. TTKPT enjoys high brand recall and they spend ~7.2% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. TTKPT has a market share of ~60% in the outer-lid pressure cooker, ~15% in inner-lid pressure cooker within the organized market and in...

Despite a challenging start to the financial year (Q1 revenue down 51% YoY), TTK staged an impressive recovery by exiting FY21 with revenue growth of 5% YoY. Supply chain issues faced in H1FY21 largely stabilised in H2FY21. E-commerce was the key segment to drive sales growth for the year (~20% of revenues) but momentum in other channels (MBOs, LFS, Prestige Xclusive) also picked up pace in Q4FY21. Among categories, on the back of new launches, cookware segment outperformed (16% of revenues) with healthy sales growth of 16% YoY in FY21. The cookware division posted its...

Background: TTKPT broadly operates under 3 major segments - Pressure Cooker & Pans, Non-stick Cookware and Kitchen Electric Appliances. TTKPT enjoys high brand recall and they spend ~7.2% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. TTKPT has a market share of ~60% in the outer-lid pressure cooker, ~15% in inner-lid pressure cooker within the organized market and in...

Q3FY21 consolidated revenue increased 23.6% YoY aided by festive demand along with revival in all channels. Strong growth was visible across all categories. Pressure Cooker segment grew by 29%YoY, Cookware by 34%YoY and Other Kitchen appliances by 19%YoY. Direct rural channel contributed double digit growth despite opened up towards end of the quarter. E-Com sales growth was significant and the revenue mix increased to 16% from 14% in FY20. MFI (Micro Finance) routed sales started to revive post lifting of moratorium in October and reached ~4% of the total sales. TTK has introduced 25 new SKUs including new category of casseroles during...