Sluggish revenue growth mars performance • TTK Prestige :: ICICI Securities

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Buy TTK Prestige, Target : | 5250 :: ICICI Securities, PDF link

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TTK Prestige Ltd - Not So Strong Quarter; Result Update Q2FY15 :: Edelweiss PDF link

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Midcaps - 2014 Value Buys: ENIL, Navneet, TTK Prestige:: ELARA

Value buys
Entertainment Network India – steady revenue growth
Entertainment Network India has continued on its robust growth path
despite a weak ad market through innovation and improved offerings.
We expect the company to report 11% revenue growth, driven by
higher volume. EBITDA margin is expected at a healthy 35%, about
50bp higher YoY, on account of operating leverage. With limited free
capacity, we expect it to drop low-yield clients and improve ad rates.
TRAI’s upcoming recommendation on license renewal and phase III
hold key to growth opportunity.
Navneet Publication – shift of gov orders to Q4 to impact sales
Navneet Publication should face pressure on top line in Q3FY14, due
to the absence of INR 20mn in government orders awarded in
Q2FY14. However, the company has received clearance from the
government, and orders should be received in Q4FY14, thus
compensating for flat growth expected in Q3FY14. If we were to
exclude government orders, revenue would grow at 15%. Increased
competition in the stationery segment should lower revenue and
impact EBITDA significantly, leading to a sharp fall in EBITDA of 62%
YoY. However, this should be offset in Q4FY14. Management is
confident of 15% growth over the next 2-3 years, owing to the
syllabus change schedule until FY16. We believe the stock is valued
attractively based on 9.7x FY15E earnings, given its asset-light balance
sheet, consistent FCF, robust 25%-plus return ratios and no macro risk.
TTK Prestige – macro concerns, given lack of growth drivers
TTK is battling several issues like power shortages in Tamil Nadu,
geopolitical concerns in Andhra Pradesh, and the government’s policy
to increase cap of subsidized LPG cylinders to 9 from 6, affecting
revenue. We expect top line to decline by 6.5%, with about 100bp
margin contraction, leading to a 22% YoY drop in PAT. With limited
signs of new product categories launches, the company should face
growth issues over the next 2-3 years. The stock is trading at 29x
FY15E earnings despite deteriorating financials.

TTK Prestige: Buy :: Business Line

Investment Focus: Some steam left in TTK Prestige :: Business Line

SREI infra, TTK Prestige, BHEL, Bajaj Hindusthan, Assam company, Taj GVK Hotels:: Business Line

TTK Prestige Q2 FY13 ::Microsec Research

TTK Prestige announced its Q2 FY13 results on 12 Oct 2012. The company’s Net Sales increased by 11% YOY to INR336 crore and EBITDA decreased by 1% to INR50 crore. EBITDA Margin of the company decreased from 16.5% to 14.8% YOY. PAT of the company decreased by 10% YOY to INR30 crore. At the CMP of INR3301 the stock discounts its FY13E EPS of INR113.4 by 29x.  

DESCRIPTION	Sep-12	Jun-12	Sep-11	QOQ	YOY
Net Sales	336	303	303	11%	11%
Total Expenditure	286	255	253
PBIDT (Excl OI)	50	48	50	4%	-1%
EBITDA (%)	14.8%	15.8%	16.5%
Other Income	1	1	1
Operating Profit	51	49	51
Interest	4	3	1
Exceptional Items	0	0	0
PBDT	47	46	50
Depreciation	2	2	1
PBT	45	44	48
Tax	15	13	15
Profit After Tax	30	31	34	-1%	-10%
PAT (%)	9.0%	10.1%	11.1%
Equity Capital	11.32	11.32	11.32
Face Value (In Rs)	10.00	10.00	10.00
No. of shares	1.13	1.13	1.13
EPS	26.7	27.1	29.8	-1%	-10%

Regards,

Team Microsec Research

TTK Prestige:: A Pricy Kitchen King :: Karvy

A Pricy Kitchen King
TTK Prestige (TTKP) has transformed itself from a single product company
to a “total kitchen appliances company” in the last five years. It is the market
leader in pressure cookers and also commands numero uno position in
induction cook‐tops with a market share of 20%.

TTK Prestige Q1FY13 results were in line with CRISIL Research’s expectations

·         Revenues grew by ~30% both y-o-y and q-o-q to Rs 3,025 mn, which demonstrates that the company has been able to maintain its business momentum.

·         EBITDA grew ~26% y-o-y to Rs 478 mn; however EBITDA margin declined 44 bps y-o-y to 15.8% because of higher raw material cost. We believe that higher raw material cost was driven by 18% y-o-y decline in the rupee vs. the US$ as TTK imports products that constitute ~30-40% of its overall sales.

·         PAT grew by 21% y-o-y to Rs 307 mn. PAT margin of 10.1% was lower than 10.9% in Q1FY12 because of higher interest costs.

CRISIL Research will release a detailed update based on its discussion with the company’s management on these results. Subsequently, CRISIL may revise its assessment.

TTK Prestige announced its Q1 FY13 results on 08 July 2012: Microsec

TTK Prestige announced its Q1 FY13 results on 08 July 2012. The company’s Net Sales increased by 30% YOY to INR303 crore and EBITDA increased by 29% to INR48 crore . EBITDA Margin of the company decreased marginally from 15.9% to 15.8% YOY. 

TTK Prestige -Capacity addition and alliances to aid growth; Buy:: Anand Rathi

TTK Prestige
Capacity addition and alliances to aid growth; Buy
Our interaction with the TTK’s management has led us to reiterate its
strengths. Its strategic partnership with Schott, alliances with World
Kitchen, Meyer Corp and Vestergaard Frandson reiterated its focus on
kitchen appliances. Management has guided to 30-35% revenue growth
in FY13, and a 15-16% EBIDTA margin. We maintain a Buy.

TK Prestige - conference call transcript-8-May-12 : Edelweiss PDF link

Please find enclosed the transcript of the conference call with TTK Prestige held on 8th May, 2012. TTK Prestige - conference call transcript-8-May-12

Regards,

TTK Prestige -Target Price: `3,647; Market leader, large distribution network, strong growth; Buy: Anand Rathi

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TTK Prestige, India’s largest kitchen appliances company, has deep
penetration into rural and urban markets (30,000 retailers and 340
exclusive stores), strong brand recall, product innovation, increasing
capacity and focus on high-growth segments. These factors, in our view,
should lead to 36% earnings CAGR over FY11-14e. We initiate coverage
with a Buy and price target of `3,647.

Accumulate :TTK Prestige - Adding Prestige to the portfolio: IDBI capital

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TTKPT is a leading player in the kitchenware market in India with a well established brand and a pan India
presence. It has over the last decade diversified from a one product company (pressure cooker) to a Kitchenware
company. Its earnings have grown at a CAGR of ~63% during FY06-11 and will witness a CAGR of 38% during
FY11-13. TTKPT is a play on the increasing income, urbanization and shift from unorganized to organized players
in the kitchenware market in the country. We initiate with ACCUMULATE and a price target of Rs3,106.
(22x FY13)
Investment Highlights
 A leading player in the pressure cooker market with a strong brand name
TTKPT is one of the largest players in pressure cooker market in India and is a dominant name in this
category. The pressure cooker market (~60% organized) is growing at ~10-15% whereas TTKPT has been
growing at ~20%. Management has guided ~20% growth to be sustainable for 2-3 years.
 Diversified product portfolio
TTKPT has over the past decade diversified its product portfolio and has added cookware and kitchen
appliances. The revenue contribution of pressure cooker has decreased from ~59% in FY06 to ~41% in
FY11 and will further reduce to ~35% by FY13E.
 Kitchen appliances & cookware to aid future growth
TTKPTs kitchen appliances/cookware had a CAGR of 65%/56% in revenues during FY09-11 and the
revenue contribution from these segments increased from 33% in FY09 to 45%in FY11. Going ahead
these segments are expected to see a CAGR of ~50% during FY11-13.
 Operating margins to remain stable at ~16%
TTKPT OPM in FY12 is expected to increase marginally by ~35 bps to 16.3% due to operating leverage. In
FY13 the OPM will remain stable.
 Revenue/PAT CAGR of 38% during FY11-13E
TTKPT revenue growth is going to be led by electric appliances and cookware segment. These segments
are going to see a high growth due to under penetration and rising disposable income. Also the increasing
number of PSK stores will aid the growth of these segments. Revenue/PAT is expected to witness a CAGR
of 38% during FY11-13.
 Return ratios to remain healthy despite ~Rs2.3 bn capex undertaken in FY12
TTKPT return ratios are expected to remain healthy during FY11-13 due to high growth in all its product
segments despite ~Rs2,300 mn incurred in FY12 for increasing capacities of the pressure cooker and
cookware categories. The ROE/ROIC is expected to decline to 41.8%/46.4% by FY13.
 Attractive Valuations:
TTKPT is a play on the mass consumption market in India and is expected to witness a CAGR of ~38% in
earnings during FY11-13. It is well positioned to capitalize on the rising disposable income and growing
urbanization in the country. There are not any listed comparable players which operate in the similar space
and thus we have compared it to consumption companies (Jubilant Foodworks, Page Industries, Titan
Industries etc) which are the closest peer set. The consumption companies trade at an average PER of ~30x
FY13 whereas TTKPT trades at 20.1x FY13. As TTKPT has high growth visibility, sustainable OPM and better
return ratios, it can trade at similar multiples. However, we have been conservative and have valued TTKPT at
22x FY13 (~25% discount) and initiate with a ACCUMULATE and a target price of Rs3,106.


read core thesis and other company covered: click link below

Consumption - A play on the evergreen, resilient theme: IDBI Cap

KIFS Result update of IndusInd Bank,VST Ind,TTK Prestige,Tata Sponge,DCB

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INDUS IND BANK

OVERVIEW

IndusInd Bank Limited is a new generation bank set up in 1994. The bank offers commercial, transactional and electronic banking products and services. IndusInd Bank has 326 branches, 633 ATMs spread across 225 geographic locations of the country as on June 30, 2011. Indus Ind plans to take the branch network to 550 by FY 13. Despite significant expansion in network /infrastructure, the cost to income ratio has remained favourable- Y-O-Y, resulting in better RoA.

Key highlights:

· Total income grew by 48% Y-o-Y to Rs.1380 cr. v/s Rs. 933 cr in June-10

· Operating Profit grew by 35% Y-o-Y to Rs. 312 cr.  v/s Rs. 231 cr in June-10

· Net profit grew by 52% Y-o-Y to Rs. 180 cr.  v/s Rs. 119 cr in June-10

· Gross NPA’s fell by 18 bps Y-o-Y to 1.08%  v/s 1.26% in June-10

· Net NPA’s fell by 8 bps Y-o-Y to 0.30%  v/s 0.38% in June-10

VST INDUSTRIES

OVERVIEW

VST Industries is engaged in tobacco and related products business. The Company has sales in India and outside India. Its products include cigarettes, unmanufactured tobacco, cut tobacco and other articles of paper and paper board. The major brands of the company include Charminar, Charminar Special Filter, Charms Mini Kings and Charms Virginia Filter, XL Filter and Shaan. Its products are targeted at the lower end of the market and have dominance in the small-sized (less than 60 mm) micro segment. Though the major chunk of revenue comes from sale of cigarettes, it is also in the business of selling non-manufactured and cut tobacco.

Key highlights:

· Total income  grew by 16% Y-o-Y to Rs. 147 cr. v/s Rs. 127 cr in June-10

· Operating Profit grew by 99% Y-o-Y to Rs. 55 cr.  v/s Rs. 28 cr in June-10

· OPM grew by 659 bps Y-o-Y to 14.97%  v/s 8.38 % in June-10

· Net profit grew by 90 % Y-o-Y to Rs. 34 cr.  v/s Rs. 18 cr in June-10

· NPM grew by 387 bps Y-o-Y to 9.35 %  v/s 5.48 % in June-10

TTK PRESTIGE

OVERVIEW

TTK Prestige is leading manufacture of Pressure cookers in India and offered the most comprehensive range of kitchenware in the world. With products and facilities that enjoy international accreditations, the company enjoys a presence in over 4,00,000 retail outlets across the country. Pressure cookers, toys, ready to fry foods; ball pens and cartography encompass some of the products the company pioneers and deals in. Promotional campaigns like ‘happy exchanges   offer’ and have won regional awards.

Key highlights:

· Total income  grew by 60% Y-o-Y to Rs. 233 cr. v/s Rs. 145 cr in June-10

· Operating Profit grew by 59% Y-o-Y to Rs. 38 cr.  v/s Rs. 24 cr in June-10

· OPM grew by 10 bps Y-o-Y to 16.25%  v/s 16.15% in June-10

· Net profit grew by 58% Y-o-Y to Rs. 25 cr.  v/s Rs. 16 cr in June-10

· NPM grew by 2 bps Y-o-Y to 10.87%  v/s 10.85% in June-10

TATA SPONGE IRON

OVERVIEW

The company is engaged in business of manufacturing high-grade sponge iron that is consistent in quality.  The company has an annual manufacturing capacity of 390,000 tonnes of sponge iron from its three kilns. Its production plant is situated at Bilaipada in Orissa. The company also operates a modern R&D facility that is set up along with a chemical laboratory to conduct the monitoring process. This R& D facility introduced Tisco Direct Reduction (TDR) -- an innovative technology for making sponge iron.

Key highlights:

· Total income falls by 2% Y-o-Y to Rs. 138 cr. v/s Rs. 141 cr in June-10

· Operating Profit falls by 31% Y-o-Y to Rs. 30 cr.  v/s Rs. 44 cr in June-10

· OPM falls by 907 bps Y-o-Y to 21.7% v/s 30.77% in June-10

· Net profit falls by 13% Y-o-Y to Rs. 23 cr.  v/s Rs. 26 cr in June-10

· NPM falls by 200 bps Y-o-Y to 16.31%  v/s 18.31% in June-10

DCB

OVERVIEW

DCB Bank is a modern emerging new generation private sector bank with 82 branches with approximately 450,000 customers.  DCB’s business models focuses on achieving a balance between Retail Mortgages, Micro SME (MSME), SME, Agri/Microfinance and mid-corporates. DCB Bank access to low cost deposits from operations spread mainly in Maharashtra, Gujarat and AP and the bank has a continued focus on building a low cost deposit franchise with strong capital position.

Key highlights:

· Total income grew by 24% Y-o-Y to Rs.185 cr. v/s Rs. 150 cr in June-10

· Operating Profit fell by 27% Y-o-Y to Rs. 17 cr.  v/s Rs. 23 cr in June-10

· Net profit grew by a whopping 403% Y-o-Y to Rs. 9 cr.  v/s loss of Rs. 3 cr in June-10

· Gross NPA’s fell by 257 bps Y-o-Y to 5.90%  v/s 8.47% in June-10

· Net NPA’s fell by 133 bps Y-o-Y to 1.19%  v/s 2.52% in June-10

52-week Blockbuster: TTK Prestige :: Business Line

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Robust growth in earnings backed by higher sales and improved profit margins plus a re-rating in valuations saw the stock of TTK Prestige treble its price over the last one year.

Strong volume growth in sales was buttressed by higher demand for kitchen appliances on peg-up in consumer spending, expansion of the company's distribution network in the tier-II/III cities and new product launches. While domestic sales registered a growth of 50 per cent in 2010-11, exports registered a growth of 62 per cent. TTK Prestige's pressure cookers recorded a 32 per cent jump while non-stick cookware registered an 83 per cent increase in volumes for the year. The company's recent launches — induction compatible pressure cookers and cookware and microwave pressure cooker have also been well received by the market.

From a price-earning multiple of 15-20 times last year, the stock is trading at almost 38 times now.

Market's optimism on the stock of TTK Prestige follows not only on the stock's consumer tag, but also the company's leadership position in the organised market for pressure cookers. The strong brand name lets the company make price increases without much difficulty. TTK Prestige improved its operating margins by around one percentage point to 16.4 per cent last year even as many others struggled to hold margins.

TTK Prestige is almost debt free with just Rs 2.24 crore of unsecured loan in its balance sheet as of end-March. The company has estimated a capital outlay of Rs 168 crore over the next two years for expansion of capacities and establishment of new plant in western India

TTK Prestige (not-rated) :: UBS India Mid-Cap Premier League - Season 1

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TTK Prestige (not-rated)
􀁑 FY11 growth for the cookers was at 31% (2.8mn in FY10 to 3.7mn in
FY11), with the inner lid cookers growth of 80% (3.5mn in FY10 to 6.63mn
in FY11). The inner lid cookers represent 65% of the cookers market with a
market size of 6.4mn and the company has a 10% market share in the same.
The outer lid cookers growth for the company was around 5%. Outer lid
cookers market is a saturated market and the company plans to maintain the
growth in this market through its wide range of product with varied
applications. TTK is a forerunner in induction based cookware and is
introducing electrical and microwave pressure cookers this year.
􀁑 The average life for cooker is around 5yrs and for non stick cookware its
even faster replacement at 2.3yrs. The company believes even if there is a
slowdown in new sales, it still has replacement demand. As per company,
growth in worst case could be 20% and best case could be 40%. Margins for
cooker/cookware stable at 12% and higher for appliances at 20%.
􀁑 The company plans to increase its outlets from 295 presently to 400 by year
end and add another 200 outlets in next 2 years. Its plan is to increase

throughput through the same existing number of outlets and also penetrate in
Indian market though PSKs (franchisee model). Average turnover from a
PSK is 40 lakhs p.a. Presently 65% of PSKs are in South, so the company
plans to add PSKs in north east markets.
􀁑 Sales distribution (dealers - 60%, modern retail outlets - 10-12%, own
galleries - 18%, exports - 3-4% and rest from uninstitutional sources like
large format stores). Margins for dealers are around 17-18% compared to
MRP and around 6% for wholesalers/authorized re-distributors.
􀁑 The cookware and others segment grew by 75% and 60%, respectively in
FY11. For appliances the company has a manufacturing facility in
Uttaranchal which the company plans to develop over 3-4 years. The
company doesn't consider itself an expert in electrical appliances.
􀁑 The company doesn't see much of an impact of rising inflation with good
sales volumes in April and May 2011. However, it will wait to see if any
impact of fuel hike.

Religare: TTK Prestige - Moving full steam ahead! Management meeting takeaways

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TTK Prestige Ltd
Moving full steam ahead!
We recently met the management of TTK Prestige (TTKPT). The company,
besides being one of the largest manufacturers of pressure cookers in India, has
diversified into the faster growing market of kitchen appliances. TTKPT sees its
growth coming from a shift in consumer preference from the unorganised to the
organised segment. The management has guided for a 25–30% CAGR in sales
and earnings over the next 2–3 years, with margins likely to be sustained at
current levels. At the current valuations (based on the management guidance),
the stock is trading at a P/E of 23.2x/18.6x its FY11/FY12 earnings.

TTK Prestige: No safety valve here:: Elara Capital

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No safety valve here
Robust growth beats expectation
TTK prestige reported a stellar performance in Q2 FY11. The top line of
INR1999mn grew by an astounding 43.4% YoY, 38% QoQ, beating
our estimates by 27%. The company posted life time high quarter
revenues led by the expansion in product range, introducing wide
variety of electrical appliances and kitchenware products.
The EBITDA of INR327mn grew by 52% YoY led by an improving
margin bracket which gained 90bps YoY, 60bps QoQ. Although raw
material costs have escalated by over 350bps as a % of sales,
improving operating leverage has enabled the company to spike
margins.