TTK Prestige Q4 Results Review: Dolat Capital Downgrades To 'Add', Cuts Target Price

Dolat Capital downgrades TTK Prestige's rating to ‘Accumulate’ from ‘Buy’ with revised target price of Rs 714, valuing at 24x FY27E EV/Ebitda.

In order to fortify the core business and accelerate topline growth, TTK Prestige will be investing Rs 5 billion in opex and capex over three years.

(Photo Source: Company website)

TTK Prestige registered revenue of Rs 6.5 billion in Q4, up 4.3% YoY. Growth in Q4 was muted vs peers - Butterfly (+11% YoY) but better than Sunflame (-24.2% YoY) and Stove Kraft (-3.8% YoY). Raw material costs declined 90 bps, which was completely offset by 50/490 bps increase in staff costs/other exp. respectively.

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Dolat Capital Report

TTK Prestige Ltd.’s Q4 FY25 revenue grew 4% (in-line with estimate), but Ebitda margins declining 450bps YoY to 7.9% was a negative surprise. The traditional channel grew by 10% YoY in Q4, however subdued demand in MFI and CSD channels, dragged overall performance.

In order to strengthen the core business, TTK Prestige has allocated Rs 2 billion towards soft operational expenses, which is likely to weigh on Ebitda margins over next two years (high single digit margins expected in FY26E).

With acceleration in sales growth, Ebitda margins should rebound to ~13% levels in next few years.

To factor in Q4 performance, we have cut our FY26/27E EPS by 15/10% to Rs 16.1/Rs 20.8 respectively. We downgrade to ‘Accumulate’ from ‘Buy’ with revised target price of Rs 714, valuing at 24x FY27E EV/Ebitda.

Click on the attachment to read the full report:

Dolat Capital TTK Prestige Q4FY25 Result Update.pdf
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Also Read: Aurobindo Pharma Q4 Review: Well-Placed To Capture Market Opportunities, Says Motilal Oswal, Maintaining Buy

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