Anand Rathi
TTK Prestige (Buy)
Target: ₹9,897
CMP: ₹8,722.15
On going through the FY21 annual report, we maintain our positive stance on TTK Prestige. The company has emerged stronger in FY21 and the growth momentum would continue in FY22 as is product range and geographic reach continues expanding pan-India, supported by SKU expansion.
Growth in cleaning solutions can be high as the company intends this brand to be the first across India in this category, on levering its marketing network and brand proposition. Exports are another growth lever, which can deliver. Innovation and convenience seem to be key differentiators for TTK and have supported growth in an extremely competitive market. The trend continued unhindered in FY21 as the company’s entire range of pressure cookers was upgraded to the Swatch platform. Also, TTK entered casseroles in FY21. It launched 127 SKUs in FY21 and plans to launch another 100 in FY22.
TTK is also keen on ramping up exports as several global brands which depended on China are diversifying their supply chains. Effective October 2020, TTK stopped imports from China, resulting in non-availability of some SKUs in Q2FY21. However, it plugged supply-side constraints by increasing capacity and building a supply chain in India.