Hold TTK Prestige; target of Rs 900: ICICI Securities

ICICI Securitie's research report on TTK Prestige

The organised retail and e-commerce channels have emerged as new preferred trade channels for consumers than conventional GT channel, at both the company and industry level. This shift is leading to higher contribution of MT channels recently. While the distribution network may remain focussed on GT, we believe the contribution of the MT channel may continue to increase over the next decade.

Outlook

We model TTKPT to report revenue and PAT CAGRs of 9.9% and 12.8%, respectively, over FY24–26E. FCF generation will likely remain strong, in our view. We revise our rating to HOLD, from Buy, and DCF-based target price to INR 900 (from INR 920; implied P/E 43x FY26E).