TTK Prestige Q3 Results Review - Demand Environment Remains Soft; Maintain Add: Yes Securities

Yes Securities Report

TTK Prestige Ltd.'s revenue grew 5.3% on YoY basis. Revenue growth was largely aided by shift of the festive season to Q3, otherwise discretionary demand environment continues to remain subdued. Moreover, the sentiment in the channel has also taken a hit with the traditional channel are reluctant to stock the products post the festive season.

Gross margins have been largely maintained despite the discounting that the company had to resort to protect its market share as various regional brands have been indulging in excessive discounting.

TTK Prestige now expects demand trends to be favorable in post couple of quarters as wallet share of the customer normalises and impact of strong real estate sales trickle down to the kitchen appliances.

TTK Prestige aspires of mid-teens growth and has strategized for the same once the demand trends become favorable. Given the muted demand environment and lower margin trajectory on back of intense competition, we continue to maintain our 'Add' with the target price of Rs 883.

We will be outwardly bullish on the stock once we see demand returning to the kitchen space.

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