Buy TTK Healthcare; target of Rs 463: Firstcall Research

“TTK Healthcare Ltd., a part of the TTK Group was incorporated in 1958 and went public in 1985.TTK is a totally integrated manufacturing and marketing Group. While maintaining leadership in specific product categories in India, the TTK Group reaches out to the world with its core products - kitchenware, pharmaceuticals, condoms, medical devices, food products etc. The Company's brand wagon consists of products that are sought after by a wide range of customers. TTK Healthcare has an All India Sales and Distribution network for marketing not only their own products, but also the KIWI Brand (Shoecare), Brylcreem (Haircare) and Kohinoor and Durex brands (Contraceptives). The Company also specializes in sales and distribution in India as a joint venture partner. It has a successful tie up with Sara Lee Household and Bodycare Pvt. Ltd. and TTK-LIG Ltd. The Company's distribution network comprises of 2800 redistribution stockists who cover both the urban and rural consumers.”

“Kajaria ceramics Ltd disclosed a phenomenon rise in standalone net sales for the quarter ended Sep 2011. During the quarter, the profit of the company declined 8.25% to Rs 34.15 million from Rs 37.22 million in the same quarter previous year. Net sales for the quarter for the quarter rose 13.92% to Rs 864.99 million from Rs 759.28 million, when compared with the prior year period. It reported earnings of Rs 4.40 a share during the quarter, registering 8.25% declined over previous year period.”

“At the current market price of Rs.409.80, the stock is trading at 19.42 x FY12E and 16.90 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.21.11 and Rs.24.25 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 27% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 10.78 x for FY12E and 9.44 x for FY13E. Price to Book Value of the stock is expected to be at 3.64 x and 2.99 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 463 for medium to long term investment,” says Firstcall Research report. 

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