Shares of TTK Prestige may gain as Motilal Oswal starts coverage with ‘buy’ rating and a target price of Rs 5,000.
Traders expect the kitchenware and appliances maker to gain on Motilal Oswal rating.
Motilal says having expanded fixed assets by 8x over last five years, TTK has ample room to improve the capacity utilisation.
TTK Prestige moves up 5%- a domestic brokerage house has initiated a 'buy' on it
— Rajalakshmi Nirmal (@crajalakshmic)
The brokerage expects higher capacity utilisation to drive significant operating leverage for TTK, with margins expanding 240 bps over FY15-17 and profit rising at 41 per cent CAGR.
It adds TTK plans to tie up with e-commerce players to maintain price discipline.
The stock has six “buy’’, three “hold’’ and five “sell’’ ratings, according to Thomson Reuters Eikon data.
The stock is up 1.2 per cent YTD and trades at 31.2 times of one-year forward earnings.