TTK's retail business is likely to grow significantly over the next 18 months. It has huge real estate in Hosur near Bangalore (production is slowly being shifted to Coimbatore and Uttarachal). The Bangalore factory has already been closed in the last fiscal. Should be an interesting story over the next 6 months.
Equity Analyst, Sanjay Chabria is of the view that TTK Prestige has target of Rs 225.
Chabria told CNBC-TV18, "TTK Prestige is India’s leading kitchenware, kitchen appliance company with products of entire kitchenware segment. Over the last couple of years the company transformed itself from a mere pressure cooker company to a total kitchen solutions company. The company has also transformed its distribution model by opening exclusive retail outlets known as Prestige Smart Kitchens. This way the company is well placed to capitalize on the consumption boom led by demographic nuclear families in India. I like the current valuations of around 9.3-times FY08 earnings at around 7.5-times FY09 earnings."
He further added, "The company is also gearing upto unlock its real estate value and its real estate holding in Bangalore and foraying into realty development. Coming to the long financials of the company for 9-months ended December 2007 is posted a net profit of Rs 15.75 crore and net sales of around Rs 262 crore which should give an EPS of around Rs 16 for FY08 and given the strong brand equity and aggressive retail foray and also product diversification. I have a price target of around Rs 225 for the stock."
Offline
Moneycontrol 
0.05 0.04%
Ads by Google
