TTK Prestige Q2 Results Review- Elevated Commodity Prices To Impact Margins; Reiterate Neutral: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.TTK Prestige Ltd. delivered muted revenue growth despite favorable base. Lower rural demand has resulted in muted revenue growth. General trade has done well during the quarter, they continued to feel the pressure from the e-commerce and modern format stores which did well during this quarter ahead of the festive season. Rural Channel driven by MFI has not performed well as they had their own issues to deal with. Gross margin has contracted 238bps on sequential basis on higher commodity prices. Company believes commodity prices are expected to remain at elevated levels impacting margin going forward. Ebitda was impacted by payment of Rs79mn to the consultant to chalk out blueprint for long term strategy and plan. Phase 1 study has been completed by the consultant and report is currently being evaluated by the company. Additional expenses and investments are expected to continue for few more quarters keeping margin under the check. Management believes H2 FY25 will result be better for the company as well as for the industry with rural expected to remain largely subdued. Given the challenges company is facing in terms of demand and elevated commodity prices impacting growth and margin in the near term. We now value the company at 42 times versus 45 times considering lower growth and margins and reiterate our Neutral stance with revised target price of Rs 946..Click on the attachment to read the full report:.L&T, Prestige Estate, Kaynes, Voltas, IRB Infra, V-Guard, TTK Prestige Q2 Results Review: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

TTK Prestige Q2 Results Review- Elevated Commodity Prices To Impact Margins; Reiterate Neutral: Yes Securities

The brokerage remains mildly positive on the stock as company has performed relatively better than peers in the challenging environment.

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TTK Prestige Q2 Results Review- Elevated Commodity Prices To Impact Margins; Reiterate Neutral: Yes Securities

The brokerage remains mildly positive on the stock as company has performed relatively better than peers in the challenging environment.

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