TTK Prestige a hit; VIP, Voltas a miss: Sharmila Joshi

Sharmila Joshi of Peerless Securities shared her outlook on quarter four performances of some stocks.

For Sharmila TTK Prestige is a hit and both VIP Industries and Voltas are a miss. Below is the verbatim transcript of her interview on CNBC-TV18 Q: Do you think TTK Prestige came out with good set of numbers and what is the the target price you expect? A: TTK Prestige has shown a steady growth in profitability and accretion in earnings per share (EPS). There has been a 22 percent growth in profitability. So both these things bode well for the stock. When you compare this stock with a lot of other midcap names, this has been a good performer. So, maybe from that perspective a 10 percent upside from current levels can be seen. Given the kind of steady performance we have seen from TTK Prestige, one could see the stock going back closer to the Rs 4000 kind of levels. Q: From the misses you have Voltas on your list? A: That would be there on everybody's miss list. Again, here in terms of stock price performance perhaps there isn’t too much of a downside because a lot of the bad numbers are factored in. They have reported lower profits this quarter and even last quarter, margins had come down significantly. This time you saw that getting reflected in the profitability though quarter-on-quarter (QoQ) the profitability did seem better. The electro-mechanical project (MEP) segment, which is one of their strong points and which has lot of projects too has been a drag and that is likely to continue for another couple of quarters’ In terms of stock prices, I am not expecting much lower levels than the current levels, maybe another 5-7 percent lower from here. However, in terms of numbers it was definitely a big miss Q: You also didn't like VIP Industries numbers, what is the target price on that? A: In terms of target price it may not be much lower than where it is currently because it is a stock that has reflected overall despondency in the midcap space, espeically with the way business for them was growing etc and those pressures continue to show. There has been dip in margins; their hard luggage segment has not moved too much, and also the fact that their handbag segment is going to take a couple of more quarters to stabilise. The promotional expenses on that are going to be quite high. All things put together it does not look like a company that is on a good growth trajectory. VIP Industries has not put in a very good performance. So, in terms of stock price maybe we cold see 5-7 percent lower from where it is at currently but in terms of numbers it was definitely a miss. Disclosure: I don't personally hold any of the stocks discussed.