Hold TTK Prestige: target of Rs 609: ICICI Securities

ICICI Securities's research report on TTK Prestige

TTK Prestige reported a soft Q1FY26 with a focus volume-led growth. The company is focussing on new strategy to restructure multiple business functions. While we remain optimistic of these initiatives, the benefits will be realised only in H2FY27-28 in our view. Other Takeaways: (1) Launched 38 new SKUs during Q1FY26, strengthening its existing categories and focusing on rationalising the portfolio. (2) Expanded own-store numbers to ~675. (3) Healthy double-digit revenue growth in its Judge brand, leading to market share gains. (4) Pricing pressure from regional players persists, but focus on premiumisation and distribution expansion led the way. (5) Continued investment in brand building and go-to-market initiatives. (6) Global volatility continued to strain supply chain, weighing on operations. We cut our FY26–27 earnings estimate by 16.6–17.3%, factoring in Q1FY26 results, the impact of competitive pressure and effects of additional investments. Retain HOLD with a DCF-based revised TP of INR 609 (implied target P/E at 45x FY27E).

Outlook

We model TTKPT to report revenue and PAT CAGRs of 5.8% and 0.9%, respectively, over FY25–27E. Maintain HOLD with a DCF-based revised TP of INR 609 (earlier INR 640; implied target P/E at 45x FY27E EPS).