04 September 2025 Company Update

TTK Prestige
Driving strategic initiatives amid headwinds REDUCE
We have interacted with TTK Prestige's management. Management noted that
demand is picking up, with festive season demand remaining critical to CMP (as on 03 Sep 2025) INR 682
monitor, while product prices remain stable. Urban demand is decent, while Target Price INR 595
rural is weak. Management announced a strategic investment of INR 5bn NIFTY 24,715
starting in Q4FY25, with benefits expected from Q4FY26. Of this, INR 2bn will
be operational expenditure, and INR 3bn capital expenditure, with the KEY
OLD NEW
investments planned through FY28. The company is currently absorbing near- CHANGES
term margin pressure due to these strategic investments but remains confident Rating REDUCE REDUCE
that they will deliver long-term gains. The company believes this investment Price Target INR 550 INR 595
will accelerate revenue growth to double digits and restore EBITDA margins to FY26E FY27E
the mid-teens. We model 8% CAGR for revenue, 14% for EBITDA, and 13% for EPS %
- -
APAT over FY25-28E. We retain REDUCE with a revised TP of INR 595/sh (33x
Sep-27E EPS).
KEY STOCK DATA
▪ Demand and guidance: Management noted that demand is picking up, with
festive season demand remaining critical to monitor, while product prices Bloomberg code TTKPT IN

remain stable. Urban demand is decent, while rural is weak. Management No. of Shares (mn) 137
observed that following three years of underperformance, the company has MCap (INR bn) / ($ mn) 93/1,060
initiated a planned strategic investment of INR 5bn starting Q4FY25, 6m avg traded value (INR mn) 61
extending through FY28, aimed at enhancing performance. Of this amount,
52 Week high / low INR 964/582
INR 2bn will be dedicated to R&D, consultancy, HR, innovation, marketing,
brand building, GTM strategies, and cost optimization initiatives. The
STOCK PERFORMANCE (%)
remaining INR 3bn will be allocated to capex. The company is currently
3M 6M 12M
absorbing near-term margin pressure due to these strategic investments but
remains confident that they will deliver long-term gains. The company Absolute (%) 11.9 11.2 (27.7)
believes this investment will accelerate revenue growth to double digits and Relative (%) 12.2 0.9 (25.3)
restore EBITDA margins to the mid-teens.
▪ Other business highlights: Management highlighted that the Judge brand SHAREHOLDING PATTERN (%)
focuses on Tier-2 and Tier-3 towns and the value segment is delivering strong Mar-25 Jun-25
growth and is expanding its reach, complementing the Prestige brand. The
Promoters 70.52 70.52
performance of the UK subsidiary was adversely impacted by the prolonged
FIs & Local MFs 14.42 14.72
slowdown in the UK and EU economies; however, the business is actively
strengthening its channel presence and expanding its reach across these FPIs 7.40 7.46

markets. Meanwhile, Ultrafresh Modular venture remains in the initial stage Public & Others 7.66 7.30
of launch and will require additional time to scale up, though it has already Pl edged Shares 0.00 0.00
established a good presence in the eastern region and is gradually expanding Source : BSE
its footprint in the western and southern markets. Pledged shares as % of total shares
▪ Outlook: We expect demand to pick up, aided by higher GDP growth,
rationalization of income tax, GST, and good monsoon. However, we believe
Keshav Lahoti
competition intensity will continue to remain intense. We maintain our
[email protected]
estimates. Our financial model forecasts an 8% CAGR for revenue, 14% for
+91-22-6171-7353
EBITDA, and 13% for APAT over FY25-28E. We have introduced FY28E
financial and roll forward our valuation to Sep-27E from Mar-27E previously. Rajesh Ravi
We maintain REDUCE, with a revised TP of INR 595/sh (33x Sep-27E EPS). [email protected]
Financial summary (INR mn) +91-22-6171-7352
Year Ending March FY23 FY24 FY25 FY26E FY27E FY28E
Mahesh Nagda
Net Sales 27,771 26,781 27,148 29,087 31,810 34,401
EBITDA 3,585 3,037 2,577 2,414 3,245 3,853
[email protected]
APAT 2,542 2,285 1,839 1,692 2,278 2,657 +91-22-6171-7319
Diluted EPS (Rs) 18.3 16.5 13.4 12.4 16.6 19.4
Riddhi Shah
P/E (x) 37.2 41.4 50.8 55.2 41.0 35.1
[email protected]
EV / EBITDA (x) 24.1 28.0 33.3 35.4 26.2 21.9
+91-22-6171-7359
RoE (%) 13.9 11.3 9.3 8.8 11.2 12.3
Source: Company, HSIE Research

HSIE Research is also available on Bloomberg ERH HDF <GO> & Thomson Reuters
TTK Prestige: Company Update

Revenue to grow at 8% CAGR over FY25-28E, mainly due We project a 14% CAGR in EBITDA from FY25 to
to volume growth and better mix FY28, driven by volume growth and margin expansion

Source: Company, HSIE Research Source: Company, HSIE Research

APAT to register 13% CAGR during FY25-28E, in line with Return ratios are anticipated to pick up after the
EBITDA growth FY26E dip, yet stay lower than their historical trend

Source: Company, HSIE Research Source: Company, HSIE Research

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TTK Prestige: Company Update

Consolidated Income Statement

Year end march (INR mn) FY23 FY24 FY25 FY26E FY27E FY28E
Net Revenues 27,771 26,781 27,148 29,087 31,810 34,401
Growth (%) 2.0 (3.6) 1.4 7.1 9.4 8.1
Material Expenses 16,607 15,753 15,746 16,783 18,291 19,780
Employee Expense 2,364 2,666 2,897 3,141 3,308 3,543
Other Expenses 5,215 5,326 5,928 6,748 6,966 7,224
EBITDA 3,585 3,037 2,577 2,414 3,245 3,853
EBITDA Growth (%) (15.8) (15.3) (15.1) (6.3) 34.4 18.7
EBITDA Margin (%) 12.9 11.3 9.5 8.3 10.2 11.2
Depreciation 530 644 707 774 835 907
EBIT 3,055 2,392 1,870 1,640 2,410 2,946
Other Income (Including EO Items) 457 753 747 751 814 813
Interest 80 134 157 147 166 172
PBT 3,432 3,012 2,460 2,244 3,058 3,587
Total Tax 882 758 666 572 780 915
Exceptional Gain/ (loss) - - (714) - - -
RPAT 2,542 2,285 1,124 1,692 2,278 2,657
Adjusted PAT 2,542 2,285 1,839 1,692 2,278 2,657
APAT Growth (%) (16.6) (10.1) (19.5) (8.0) 34.6 16.7
EPS 18.3 16.5 13.4 12.4 16.6 19.4
EPS Growth (%) (16.6) (10.1) (18.5) (8.0) 34.6 16.7
Source: Company, HSIE Research

Consolidated Balance Sheet

Year end march (INR mn) FY23 FY24 FY25 FY26E FY27E FY28E
SOURCES OF FUNDS
Share Capital - Equity 139 139 137 137 137 137
Other Equity 19,246 20,738 18,651 19,522 20,772 22,197
Total Shareholders Funds 19,385 20,876 18,788 19,658 20,909 22,334
NCI 33 2 (43) (63) (63) (48)
Long Term Debt 408 - 443 443 443 443
Short Term Debt - 469 74 100 100 100
Total Debt 408 469 517 543 543 543
Net Deferred Taxes 303 247 206 217 232 250
Other Non Current Liabilities 791 1,173 1,098 1,133 1,191 1,236
TOTAL SOURCES OF FUNDS 20,920 22,767 20,566 21,488 22,813 24,316
APPLICATION OF FUNDS
Net Block 4,303 4,284 4,597 4,720 4,978 5,179
Goodwill 1,561 1,605 961 961 961 961
CWIP 98 238 14 200 200 200
Intangible assets 82 66 53 84 119 162
Right of Use Assets 890 1,263 1,185 1,685 1,763 1,813
Non Current Investments 2 3 52 52 52 52
Other Non Current Assets 325 490 337 356 383 409
Total Non-current Assets 7,260 7,949 7,199 8,058 8,456 8,776
Current-Investments 2,489 3,430 2,358 2,475 2,599 2,729
Inventories 5,930 5,541 6,111 6,163 6,711 7,257
Debtors 3,331 2,939 2,869 3,032 3,225 3,487
Cash & Equivalents 5,956 6,647 5,831 6,020 6,431 6,998
Other Current Assets 909 867 895 931 988 1,036
Total Current Assets 18,615 19,424 18,064 18,621 19,954 21,508
Creditors 2,712 2,401 2,387 2,789 3,050 3,299
Other Current Liabilities & Provns 2,243 2,204 2,310 2,402 2,547 2,669
Total Current Liabilities 4,955 4,605 4,697 5,191 5,598 5,967
Net Current Assets 13,660 14,819 13,367 13,430 14,357 15,540
TOTAL APPLICATION OF FUNDS 20,920 22,767 20,566 21,488 22,813 24,316
Source: Company, HSIE Research

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TTK Prestige: Company Update

Consolidated Cash Flow

Year end march (INR mn) FY23 FY24 FY25 FY26E FY27E FY28E
Reported PBT 3,410 3,012 1,746 2,244 3,058 3,587
Non-operating & EO Items (73) (25) 684 (571) (625) (621)
Interest Expenses 80 134 157 147 166 172
Depreciation 530 644 707 774 835 907
Working Capital Change (1,142) (91) (1,091) 229 (412) (506)
Tax Paid (816) (785) (630) (572) (780) (915)
OPERATING CASH FLOW ( a ) 1,990 2,889 1,572 2,251 2,242 2,624
Capex (654) (674) (417) (905) (915) (930)
Free Cash Flow (FCF) 1,335 2,215 1,156 1,346 1,327 1,694
Investments (1,351) (1,762) 1,694 (418) (424) (430)
Non-operating Income 437 581 760 565 615 615
Others - - - - - -
INVESTING CASH FLOW ( b ) (1,569) (1,855) 2,037 (758) (723) (745)
Debt Issuance/(Repaid) 9 61 49 26 - -
Interest Expenses (39) (39) (62) (147) (166) (172)
FCFE 1,306 2,237 1,142 1,225 1,161 1,522
Share Capital Issuance - - (2,489) - - -
Dividend (485) (832) (832) (821) (1,027) (1,233)
Others (161) (234) (289) (661) (214) (208)
FINANCING CASH FLOW ( c ) (675) (1,044) (3,622) (1,604) (1,408) (1,612)
NET CASH FLOW (a+b+c) (254) (9) (13) (111) 111 267
EO Items, Others - - 714 - - -
Closing Cash & Equivalents 325 318 305 195 306 573
Source: Company, HSIE Research

Key Ratios
Year end march FY23 FY24 FY25 FY26E FY27E FY28E
PROFITABILITY (%)
GPM 40.2 41.2 42.0 42.3 42.5 42.5
EBITDA Margin (%) 12.9 11.3 9.5 8.3 10.2 11.2
EBIT Margin 11.0 8.9 6.9 5.6 7.6 8.6
PBT Margin 12.4 11.2 9.1 7.7 9.6 10.4
APAT Margin 9.2 8.5 6.8 5.8 7.2 7.7
RoE 13.9 11.3 9.3 8.8 11.2 12.3
RoIC (or Core RoCE) 21.0 15.8 12.2 10.7 14.9 17.2
RoCE 18.7 15.3 12.9 12.1 15.5 17.0
EFFICIENCY
Tax Rate (%) 25.7 25.2 27.1 25.5 25.5 25.5
Fixed Asset Turnover (x) 4.4 3.9 3.7 3.6 3.6 3.6
Inventory (days) 77 76 82 77 77 77
Debtors (days) 44 40 39 38 37 37
Other Current Assets (days) 11 12 12 12 11 11
Payables (days) 43 33 32 35 35 35
Other Current Liab & Provns (days) 26 30 31 30 29 28
Cash Conversion Cycle (days) 63 65 70 62 61 62
Net D/E (x) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3)
Interest Coverage (x) 38.3 17.9 11.9 11.2 14.5 17.1
PER SHARE DATA (Rs)
EPS 18.3 16.5 13.4 12.4 16.6 19.4
CEPS 22.2 21.1 18.6 18.0 22.7 26.0
Dividend 6.0 6.0 6.0 7.5 9.0 10.0
Book Value 140 151 137 144 153 163
VALUATION
P/E (x) 37.2 41.4 50.8 55.2 41.0 35.1
P/BV (x) 4.9 4.5 5.0 4.8 4.5 4.2
EV/EBITDA (x) 24.1 28.0 33.3 35.4 26.2 21.9
EV/Revenues (x) 3.1 3.2 3.2 2.9 2.7 2.4
OCF/EV (%) 2.3 3.4 1.8 2.6 2.6 3.1
FCF/EV (%) 1.5 2.6 1.3 1.6 1.6 2.0
FCFE/Mkt Cap (%) 1.4 2.4 1.2 1.3 1.2 1.6
Dividend Yield (%) 0.9 0.9 0.9 1.1 1.3 1.5
Source: Company, HSIE Research

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TTK Prestige: Company Update

1 Yr Price History
TTK Prestige
1100

1000

900

800

700

600

500
Aug-24

Aug-25
Dec-24
Nov-24
Sep-24

Mar-25

Apr-25
Jan-25

Jun-25

Jul-25

Sep-25
Feb-25

May-25
Oct-24

Rating Criteria
BUY: >+15% return potential
ADD: +5% to +15% return potential
REDUCE: -10% to +5% return potential
SELL: >10% Downside return potential

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TTK Prestige: Company Update

Disclosure:
We, Keshav Lahoti, CA and CFA, Rajesh Ravi, MBA, Mahesh Nagda, CA & Riddhi Shah, MBA authors and the names
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Any holding in stock – NO
HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475.

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TTK Prestige: Company Update

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