TTK Prestige LIMITED - An Analysis

Recommendation : BUY
December 31, 2010.

Debt/Equity of TTK Prestige LIMITED as of now has improved at 0.016 vs 0.022 as in March 2010 quarter, which is almost negligible debt. Reserves and Surplus have increased by 34% at 150.69 crores in the September quarter from 112.83 crores in the March quarter this year. Capital Employed has increased by 29% to 167.7 crores in September quarter from 129.69 crores in March quarter.

Income from Operations have increased by 43% to 199.86 crores in the September quarter from 139.35 crores in the corresponding quarter last year. Operating Profit Margins are similar to that of last year at 16% in this quarter. The remarkable thing is the increase in the percentage of the Purchase of Traded Goods, which indicates to the outsourcing of manufacture of Kitchen Appliances. The breakdown of Quarterly Financial Statements is given below.

If we compare things annually, Income from Operations in 2010 increased 27% to 507.94 crores from 401.27 crores in 2009. Operating Profit Margins for the financial year ending March 2010 was 15% as compared to 10% for the financial year ending March 2009. The breakdown of Annual Financial Statements is given below.

Return over Capital Employed (ROCE) for the current year ending six months is coming out to be 33% as compared to an ROCE of 60% in the whole financial year of 2009-10.

Cash Conversion Cycle (CCC) for the current year ending six months is coming out to be 6.69 days as compared to 13 days for the whole financial year ending March 2010.

Total Assets per Share of the company is coming out to be Rs. 148.75. Earning per Share of the company for the past four quarters is coming out to be Rs. 57.42. Current Price of the scrip is Rs. 1620.95. Trailing P/E of the company is coming out to be 28.22.

Equity Section notes that there is impressive growth in their Income from Operations and also, there is improvement in their Cash Conversion Cycle. The company seems to be quiet confident about their Kitchen appliances segment Therefore, Equity Section issues a BUY rating on TTK Prestige LIMITED.

Discalimer : Equity Section doesn't hold this scrip. But its a part of Equity Section Watchlist.