TTK Prestige Q2 Review - Benefits Of Investments To Arrest Market Share Decline In FY25-26: ICICI Securities

ICICI Securities Report

TTK Prestige Ltd.’s Q2 FY24 primarily indicates impact of steep increase in competitive intensity. Revenues declined 13.4% YoY with likely market share loss (in our view) on subdued consumer demand and aggressive discounting by peers.

We model weak performance in Q3 FY24 but a recovery by Q4 FY24 and H1 FY25.

We expect benefits of investments to be realised in FY25 and beyond. Key initiatives by TTK Prestige:

1. higher investments in Judge brand and likely market share gains at bottom-of-pyramid,

2. likely launch of premium brand to tap consumers at top end and

3. favorable base.

We remain structurally positive on TTK Prestige due to high return on capital employed, free cash flow generation, established brand, distribution and strong promoter/ management background.

Maintain 'Buy'.

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