TTK Prestige Ltd share Price

Consumer discretionary stocks have been showing rejuvenation of upward momentum after undergoing price and time wise correction. Within the space we remain constructive on TTK Prestige as it is resolving out of five months base formation (₹875-745). Thereby offering fresh entry opportunity with favourable risk reward. Further, recent sharp correction in commodity prices would act as tailwind
 
Structurally, as per change of polarity concept stock has retested three years range breakout area of ₹750 and formed a higher base, highlighting elevated buying demand that augurs well for next leg of up move
 
We expect the stock to accelerate upward momentum and gradually head towards ₹ 992 in coming months as it is implicated target of five months consolidation (₹ 875-745) coincided with 80% retracement of CY22 decline (₹1050-745)
 
On the oscillator front, weekly MACD logged a bullish crossover, indicating acceleration of upward momentum

TTK Prestige is India’s leading player in kitchen solutions and has been successful in transforming itself from a company manufacturing pressure cookers to possessing the entire gamut of home and kitchen appliances. It continues to be a market leader in the cooker segment and has material share in other appliance and cookware categories.
 
In order to cater to strong domestic and export demand, TTK has recently added annual capacity of 4 million pieces non-stick cookware in Gujarat factory. TTK is further looking to enhance its distribution reach in tier-II/III cites to capture long term growth opportunities. It has maintained its guidance of achieving ₹ 5000 crore by FY25 through organic and inorganic route (₹ 1000 crore). In FY22, export sales grew 38% YoY to ₹ 98 crore. Export outlook continues to remain positive despite logistical issues (higher freight cost and container shortage). It is targeting exports to breach the ₹ 500 crore mark in FY25 with revenue contribution increasing from current 3.5% to 8-10%.
 
We build in revenue and earnings CAGR of 13% and 14% respectively in FY22-24E. The company over years has maintained its balance sheet strength with strong cash reserves (~₹ 400+ crore) and healthy RoIC of 35%+.

Consumer Durables company TTK Prestige announced Q2FY23 results:

• Q2FY23 vs Q2FY22:
  • Domestic Sales grew by 0.8% from Rs 784.6 crore to Rs 790.5 crore.
  • Export Sales for the quarter were down by 27.7% to Rs 17.3 crore from PY Rs 23.9 crore.
  • Total Sales remained flat at around Rs 808 crore 
  • EBITDA was at Rs 127.1 crore as compared to PY Rs 143.8 crore; down by 11.6%
  • EBITDA margin was around 15.7% (PY 17.8%)
  • Profit before Tax is at Rs 115.0 crore (PY Rs.132.7 Crore); down by 13.3%
  • Profit after Tax is at Rs 85.7 crore (PY Rs 98.64 crore).
  • EPS was at Rs 6.18 per equity share of face value Rs 1/- each (PY Rs 7.12)
• H1FY23 vs H1FY22:
  • Domestic Sales grew by 22.0% from Rs 1121.1 crore to PY Rs 1368.0 crore.
  • Export Sales for the quarter were down by 10.8% to Rs.39.6 crore from PY Rs 44.4 crore.
  • Total Sales grew by 20.8% from Rs 1165.5 crore to PY Rs 1407.6 crore.
  • EBITDA was at Rs 216.7 crore as compared to PY Rs 191.1 crore; grew by 13.4%
  • EBITDA margin was around 15.4% (PY 16.4%)
  • Profit before Tax is at Rs 192.7 crore (PY Rs 169.3 crore); grew by 13.8%
  • Profit after Tax is at Rs 143.3 crore (PY Rs 125.9 crore).
  • EPS was at Rs 10.34 per equity share of face value Rs 1/- each (PY Rs 9.08)
  • Consolidated turnover grew by 16.8% from Rs 1259.6 crore to Rs 1471.4 crore.
  • Consolidated Profit before Tax stood at Rs 186.8 crore (PY Rs 179.5 crore); grew by 4.1% 
  • Consolidated Profit after Tax is at Rs 137.1 crore (PY Rs.134.1 crore)
  • Consolidated EPS was at Rs 9.89 (PY Rs 9.68).

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