INSUBCONTINENT EXCLUSIVE:
NEW DELHI: TTK Prestige would ring a bell with most Indians, as Prestige pressure cooker has been a household name
The company, which started its journey six decades ago, has grown into one of a leading player in kitchen appliances, with some 600 product
offerings in the market.
In last 10 years, the company has grown both topline and bottomline consistently; sales have grown at close to 20
per cent annually and profits at 25 per cent
But sales growth has slowed down to around 7 per cent in last five years.
The stock has been steady outperformer, rising from Rs 122 on June
26, 2008 to trade at Rs 8,911 apiece on January 17, 2018, a 73-times expansion.
Its listed peer Hawkins Cookers delivered 1,577 per cent
return between June 26, 2008 and June 26, 2018, while Gandhimati Butterfly rose 3,000 per cent in the same period.
But TTK Prestige has hit
a speed bump after hitting a 52-week high of Rs 8,911 on January 17, 2018
Founder Managing Director at Equinomics Research Advisory, says it was a bubble waiting to burst.
But independent market analyst Ambareesh
Baliga has a completely different take on it
primarily pressure cooker company transform itself into a kitchen solutions provider with topline growing 3x and bottomline at more than 5x
business.
In an interaction with ETNOW last week, Chairman TT Jagannathan said he expected volume growth in high teens this quarter, a
little better than that next quarter and above 20 per cent in the subsequent quarters.
The company reported a 32.35 per cent drop in
consolidated net profit for March quarter at Rs 37.44 crore against Rs 55.35 crore posted for the same quarter of the last financial
for those markets.
TTK Prestige has presence in the lower price point products segment through the Judge brand.
Given the high cash levels
the BSE share price at Rs 5,848 apiece.
