Geojit Reaffirms Buy on TTK Prestige After Valuation Correction
Geojit Financial Services has reiterated its buy recommendation on TTK Prestige Limited, setting a target price of Rs 566 from the current Rs 430 level. This call highlights the stock's appeal following a recent sharp decline, driven by resilient demand in India's kitchen appliances sector despite temporary margin squeezes. Investors gain a clear entry point into a company poised for long-term expansion amid premiumisation and e-commerce trends.
Robust Demand Fuels Revenue Growth
TTK Prestige posted consolidated revenue of Rs 801.4 crore in Q3FY26, up 10.2 percent year-on-year, propelled by festive sales and channel broadening. Domestic sales rose 9 percent, while exports surged 25.6 percent on pre-emptive shipments. The Judge brand, repositioned for mass markets, achieved over 50 percent growth in the first nine months of FY26, underscoring strength in Tier-2 and Tier-3 cities where value products find eager buyers.
E-commerce and quick commerce channels led the charge, with improved price discipline aiding realizations. Prestige Xclusive stores reached 707 outlets across 328 cities, capturing consumption shifts toward smaller towns.
Margin Pressures Offset by Core Strength
EBITDA fell 9.4 percent to Rs 71.9 crore, with margins at 9 percent, hit by rising costs for aluminium, copper, and nickel, plus competitive pricing in small appliances. Exceptional charges of Rs 25.5 crore, including voluntary retirement scheme costs, dragged reported PAT down 44 percent year-on-year. Adjusted EBITDA margins held at 12.7 percent, signaling underlying operational health.
Capex Drives Long-Term Efficiencies
A Rs 200 crore capital expenditure plan targets production capacity boosts, distribution to nearly 1,000 Prestige Xclusive stores, and over 85 new SKUs in the recent period. These moves, though short-term margin drags, promise scalability in a market favoring premium and innovative appliances. Projections show revenue climbing to Rs 3,526 crore by FY28E, with adjusted PAT at Rs 263 crore and EPS at Rs 19.2, implying over 20 percent CAGR from FY27.
Attractive Valuation Amid Key Risks
Trading at 31.7x FY26E earnings and 22x FY28E, with debt-to-equity at 0.1x, TTK Prestige offers upside potential. The stock's 52-week low near Rs 423 forms strong support, with resistance at Rs 500. Risks include persistent input inflation, fierce competition, capex execution hurdles, and export uncertainties, yet the 12-month target of Rs 566 presents a balanced risk-reward for consumption exposure.
