Buy TTK Prestige; target of Rs 1750: Firstcall Research

“TTK Prestige, has emerged as India’s largest kitchen appliances company catering to the needs of home makers in the country. The company offers pressure cookers, non-stick cookware, gas stoves, and domestic kitchen appliances. It also involves in property and investment business. TTK Prestige has decided to develop its property at Bangalore as the manufacturing facility situated therein will be phased out in the next 12 months. The company’s net sales and net profit are expected to grow at a CAGR of 25% and 55% over FY09 to FY12E. TTK Prestige Limited is also the first Kitchenware Company in India to receive the ISO 9001 Certification and the PED/CE Certification by TUV, Germany.”

“EPS of the company is expected to be at Rs 64.93 and Rs 73.01 for the earnings of FY11E and FY12E respectively. The company’s net sales and net profit are expected to grow at a CAGR of 25% and 55% over FY09 to FY12E. Price to book value of the company is expected to be at 8.96 x for FY11E and 6.30 x for FY12E respectively. On the basis of EV/EBDITA, the stock trades at 15.91 x for FY11E and 13.96 x for FY12E. At the market price of Rs 1547.40, the stock is trading at 23.83 x and 21.19 x for FY11E and FY12E respectively. We recommend ‘BUY’ in this particular scrip with a target price of Rs 1750 for medium to long term investment,” says Firstcall Research report.

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