Buy TTK Prestige; target of Rs 6300: Anand Rathi

Anand Rathi 's research report on TTK Prestige

With its robust manufacturing capacity, diversified product range and all-India operations, TTK is favourably placed in Indian kitchen appliances, resulting in maintaining PEx of 35x as we roll over to FY23 earnings. As prospects are improving gradually after a tepid Q1 FY21, it is well set to bounce back once normalcy returns. Strong balance sheet with `3.9bn free cash, is a major comforting factor in challenging times.

Outlook

We have not revised our FY21e and FY22e, post-Q1FY21 results. We upgrade the stock to a Buy, with a target of `6,300 (35x FY23e EPS of `180) as we roll over to our estimates to FY23, factoring in revenue/ PAT CAGRs of 13%/23% over FY21-23, resulting in the RoCE rising from 15% to 19%.

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