iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Q4FY23 Review: TTK Prestige: Demand situation worsens

26 May 2023 , 12:24 PM

TTK Prestige (TTK) reported Q4FY23 results below our estimates with sales declining by 12% and Ebitda/PAT declining by 25%+. Even as overall demand is expected to remain weak in H1FY24, the company is working on several initiatives to revive its medium term growth outlook.

Large miss: 

TTK reported a net sales / Ebitda / PAT decline of 12.4%/26.5%/27.5% – these were 16%/29%/28% below analysts of IIFL Securities estimate. While all segments declined YoY – decline in cookers and cookware was higher at 20%/13% respectively. Lower gross margin and negative operating leverage resulted in a larger miss at Ebitda and PAT level. Sluggish demand, coupled with increased competitive intensity, higher discounting and shift in share of wallet towards other sub-categories such as hospitality, etc. were some of the factors that led to the weak sales performance.

Reiterate revenue and margin targets: 

While demand is expected to be subdued in H1FY24, management sounded confident of reaching its domestic revenue target of Rs35bn (implied Cagr of 17% over FY23- 25) driven by a more meaningful play in the economy end (via “Judge by Prestige” brand), launching innovative products to counter competition at premium end and entering adjacent categories with high growth potential. Management also reiterated its Ebitda margin guidance of 14.5-16%.

EPS downgrade of 12%/9%:

Analysts of IIFL Securities factor in a soft demand environment in H1FY24, which results in a ~7% cut in sales and a 12%/9% cut in EPS estimates for FY24/25, respectively. While valuation is reasonable at 28x FY25 EPS, demand recovery is expected by 2H and the stock lacks any near term triggers. Analysts of IIFL Securities forecast 11%/17%/17% sales/Ebitda/EPS Cagr over FY23-26. They maintain their ADD rating with a target price of Rs750.

Analysts of IIFL Securities downgrade their EPS estimates by 12%/9% to factor in the Q4 miss and maintain ADD rating on the stock with a target price of Rs750.

Related Tags

  • TTK Prestige
  • TTK Prestige Q4
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.