TTK Prestige (TTK) is the leading brands in kitchen appliances with 40%+ market share in organized market. It has evolved from being a single product company to a multi product company offering an entire gamut of kitchen and home appliances (600+ products). It expects to double its revenue in the next 5 years backed by revival in consumption demand, new 5 cr LPG connections under the Ujjawala Scheme, inorganic expansion and traction in exports
Outlook and valuation: We expect TTK to report a CAGR of 18.6%/24.5% in revenue/PAT respectively over FY2018-20E. It is currently trading at a P/E of 29x FY2020E EPS which is at discount to its 5 year average PE multiple of 40x. Hence, we initiate coverage on the stock with a BUY and Target Price of `7500 (35x FY2020E EPS), an upside of 21% from the current levels.

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