(Reuters) – India’s TTK Prestige reported an about 11% fall in second-quarter profit on Thursday as it grappled with increasing competition in the kitchenware segment.
The company reported a consolidated net profit of 528.7 million rupees ($6.3 million) in the quarter ended Sept. 30, down from 592.7 million rupees a year earlier.
Revenue from operations rose nearly 3% to 7.50 billion rupees, while total expenses increased 5%.
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KEY CONTEXT
Premium household appliances and kitchenware makers have been grappling with intensifying competition and easing discretionary spending, as inflation-hit consumers are opting for cheaper products from smaller players.
Meanwhile, higher prices of key raw material copper has also been weighing on kitchenware makers’ margins.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
TTK Prestige 40.59 28.20 – 10.33 18.33 Hold 4 0.95 0.69
Crompton Greaves 38.07 25.11 2.56 12.81 29.18 Buy 32 0.80 0.77
Consumer Electricals
Voltas 58.47 43.59 2.74 17.53 64.97 Hold 33 1.10 0.31
Havells India 58.64 40.08 4.53 15.88 23.81 Hold 23 0.86 0.54
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 84.0750 Indian rupees
(Reporting by Ashna Teresa Britto; Editing by Eileen Soreng)
