Is more upside left in TTK Prestige after recent rally? !!! Shares of TTK Prestige, a kitchen cookware and appliance manufacturer, have been on a run in a weak market environment for the past two weeks. The stock has surged over 25 % in the said period as investors await the quarterly results next week. According to a UBS report, despite the weak consumer sentiment the management is hopeful of recovery in 2HFY14. The management hopes that the demand situation would improve over the next 3-4 quarters. Tamil Nadu sales is expected to be normal by September-October. The first quarter is likely to remain weak, the report says. The company has gradually transformed itself from an outer-lid pressure cooker firm to a complete kitchen solutions company. Induction cook top and inner lid pressure cookers are the major contributors to non-south market growth. The company plans to double the non-south market contribution in next five years. UBS has derived its price target of Rs 3,800 on an average FY14/15E PE multiple of 22x (around past 3 year mean). Ambit Capital is of the view that stocks from consumer space are likely to benefit from the rising stellar blue-collar wage inflation seen over the past three years. "We recommend investing in producers of entry-level consumer goods such as pressure-cookers, paints, light electricals and two-wheelers to benefit most meaningfully from this theme," the report said. Mitesh Thacker, technical analyst, miteshthacker is of the view that the stock is likely to give a break-out. "Over the last two years or so, this stock has been moving in the range of about Rs 3,800-3,850 on the upside and about Rs 3,000-2,900 on the downside. Now is the time when the stock can possibly give a break-out. It is currently at about Rs 3,610, but I would be looking to buy into it once it starts trading above Rs 3,850 with a price target of around Rs 4,500," he said.
Posted on: Tue, 09 Jul 2013 08:15:59 +0000
Trending Topics
Recently Viewed Topics
© 2015