ConsumerDurables

September26,2012

TTKPrestige

InstitutionalEquities
IndiaResearch

Bloomberg:TTKPTIN
Reuters:TTKP.BO

INITIATIONREPORT

SELL

APricyKitchenKing

Recommendation

TTK Prestige (TTKP) has transformed itself from asingle product company
toatotalkitchenappliancescompanyinthelastfiveyears.Itisthemarket
leader in pressure cookers and also commands numero uno position in
inductioncooktopswithamarketshareof20%.

CMP:

Rs3,787

TargetPrice:

Rs3,173

Downside(%)

16%

StockInformation
MarketCap.(Rsbn/US$mn)

Outlook&Valuation
RevenueandnetincomeofTTKPgrewby31%and57%CAGR,respectively
inFY0712period.WebelievethatTTKPstopandbottomlinestomaintain
25%CAGRinFY1214Eperiod.AtCMPofRs.3,787,thestocktradesat31.1x
and 24.4x of FY13E and FY14E EPS, respectively. We believe the stock is
expensive at current levels amid slower growth and expected lower return
ratios. We initiate coverage on TTKP with SELL recommendation and a
targetpriceofRs.3,173pershare,having16%downsidepotential.
KeyFinancials
Y/EMar(Rsmn)
NetSales
EBIDTA
NetProfit
EPS(Rs)
PER(x)
EV/EBITDA(x)
ROE(%)

FY10
5,079
774
485
42.8
88.5
54.8
46.4

FY11
7,636
1,253
843
74.5
50.8
33.8
53.4

FY12
11,034
1,768
1,134
100.1
37.8
24.0
47.6

FY13E
14,092
2,198
1,377
121.6
31.1
19.3
40.4

FY14E
17,351
2,776
1,760
155.5
24.4
15.3
38.2

FY15E
21,168
3,259
2,091
184.7
20.5
13.0
35.0

3mADV(Rsmn/US$mn)

413/7.6
0.95

Sensex/Nifty

18,694/5,674

Shareoutstanding(mn)

11

StockPerformance(%)

Absolute
Rel.toSensex

1M
11.0

3M
22.4

12M
44.5

YTD
51.6

5.8

11.7

28.8

30.7

Performance

3,000

16,000

2,500

15,000

2,000

Sensex(LHS)

S12

3,500

17,000

J12

18,000

M12

4,000

J12

19,000

M12

Returns Ratios to Decline Going Forward: TTKP has generated near 50%
ROEinthelastthreeyearsduetohigherassetturnoversandincreasedEBIT
Margin. We believe the ROE will decelerate to near 30% in FY16E due to
decreasedEBITMarginandlowerassetturnoversasthecompanyhasbeen
investingincapitalexpenditure.WebelievethatTTKPscapacityutilization
willpeakbyFY14E.InordertodrivesalesfurthertheCompanyhastohike
inhouse capacity or rely on outsourcing after FY14E. Both the options will
adverselyimpactTTKPscashflowsandreturnratiosfromFY15Eonwards.

3,967/2,151

Beta

N11

CompetitiveAdvantageinPressureCookersmaynotbeextendedtoKEA:
WebelieveTTKPmaynotbeabletoenjoysimilarcompetitiveadvantagein
KEAsegmentasitenjoysinPressureCookerswhereitistheleaderwith40%
marketshare.TTKPenjoysmarketshareof20%inInductionCooktopsand
highsingle digits in rest of the KEA products. TTKP outsources most of its
KEAs.Moreover,theorganizedpressurecookermarketisclosertoduopoly
whereas KEA segment markets represent oligopolies. TTKP generates an
EBITDA margin of ~19% on inhouse manufacturing and ~12% on
outsourcedproducts.WebelievethecompanysmarginwillreduceasKEA
outgrowsrestofthesegments.

43/780

52weekHigh/Low(Rs)

S11

Distributor Survey Reveals Deceleration of Sales Growth: Our distributor

surveyacrossIndiahasrevealedthatthevolumegrowthinPressureCookers
&NonStickCookwarehasdeceleratedtosingledigitsandvolumegrowthin
KEAincludingInductionCooktopshasdecreasedtomidteens.

TTKPrestige

Source:Bloomberg

1YearForwardP/E
30
25
20
23.0
15
10
5
0
Apr Apr Apr Apr Apr Apr
07
08
09
10
11
12
TTKPrestige1yrForwardP/E
Mean
Mean+StdDev

Source:KarvyInstitutionalResearch

AnalystsContact
JagadishwarPasunoori,CFA,FRM
+914044857912
jagadishwar.p@karvy.com

Source: Company & Karvy Institutional Research

September26,2012

TTKPrestige

CompanyFinancialSnapshot

Profit&loss
Rs.mn

CompanyBackground

FY12

FY13E

FY14E

11,034
1,768
31
103
62
1,632
499
1,134
1,134

14,092
2,198
16
163
108
1,943
567
1,377
1,377

17,351
2,776
16
139
150
2,502
742
1,760
1,760

EBIDTAMargins(%)
PATMargins(%)
EV/EBIDTA(x)
PER(x)

16.0
10.3
24.0
37.8

15.6
9.8
19.3
31.1

16.0
10.1
15.3
24.4

DividendPayout(%)

15.0

17.0

22.0

Netrevenues
EBIDTA
Otherincome
Interest
Depreciation
ProfitBeforeTax
Provisionfortax
AdjustedNetProfit
ReportedNetProfit
ProfitandLossRatios

TTKPrestige(TTKP)a57yearoldcompanyoperatesin
kitchen appliances industry. Its portfolio includes Pressure
Cookers, Pans, NonStick Cookware, Gas Stoves, Induction
Cooktops, Rice Cookers and other kitchen electrical
appliances.
TTKP has evolved from a single product and South India
dominant company to total kitchen appliances company
with panIndia presence. It has won many awards such as
SuperBrand,MasterBrandandStarSME.
TTKP has eight manufacturing facilities at Housur,
Coimbatore & Roorkee. The Company generated Rs. 11 bn
andRs.1.1bninsalesandnetincome,respectivelyinFY12.
Itsdistributionnetworkincludes356PSKoutletsand30,000
retailoutletsapartfrominstitutionssuchasHPCL&BPCL.

CashFlow

BalanceSheet
Rs.mn

FY12

FY13E

Shareholdersfunds

2,851

3,956

FY14E

Rs.mn

5,266 EBIT
(Inc)/Decinworkingcapital
Cashflowfromoperations

Otherincome
5,266
3,164 Depreciation

FY12

FY13E

FY14E

1,705
(181)
1,525

2,090
(469)
1,621

2,625
(334)
2,291

31

16

16

223

710

Deferredtaxliability
TotalLiabilities&Equity

68
3,142

4,666

Netblock

1,507

2,896

49

108

150

794

397

278 Interestpaid

(103)

(163)

(139)

97

138

(197)

(272)

(450)

123 Dividendspaid
4 Taxpaid

(499)

(567)

(742)

741

1,232

805

744

1,126

3,142

4,666

(1,540)

(1,100)

(300)

(735)

(356)

826

154

353

(550)

11

135

(160)

TotalLoans

CapitalWIP
LTloansandadvances
Investments
Netcurrentassets
Deferredexpenditure
TotalAssets
BalanceSheetRatios
Fixedassetsturnoverratio
(x)
ROCE(%)

11.5

6.4

46.0

37.9

ROE(%)

47.6

40.4

(0.00)

0.11

NetDebt/Equity(x)

3.9

EV/Sales(x)

3.1

1,697 Netcashfromoperations
Capitalexpenditure
5,266

FreeCashFlows
Inc/(Dec)inLTborrowing

5.7 Inc/(Dec)inSTborrowing

165

487

(710)

535

223

286

223

286

402

(312)

63

116

37.2 CashfromFinancialActivities
38.2 OpeningCash
ClosingCash
2.4 ChangeinCash

(0.08)

Shareholdingpattern

SalesbyRegionFY12
Northand
East,20%

Exports,3%

FIIs,11.8
Promoter/Maj
ority,74.9

Banks/Fis/MFs
,3.4
Others,0.9
Public,
9.0

Source:Bloomberg

West,15%

South,62%

Source:Company

September26,2012

TTKPrestige

Outlook&Valuation
AtCMPofRs.3,787pershare,thestocktradesatP/Emultipleof31.1xand24.4xof
FY13E & FY14E EPS, respectively. We value TTKPs core business at Rs. 3,109
(20xFY14EEPS)anditsrealtyatRs.64.HenceourtargetpricecomestoRs.3,173
pershare,having16%potentialdownside.Aswebelievethestockisovervalued
at the current levels, we initiate coverage on TTK Prestige with SELL
recommendation.
DCFFCFEValuation:WevaluedTTKPusingFreeCashFlowtoEquity(FCFE)
methodtosubstantiateourFY14EP/Emultipleof20.Wehaveassumedover20%
growthintoplineuntilFY17EandgrowthinhighteensthereaftertillFY22E.We
have also assumed that TTKPs EBITDA margin will be compressed by 200 bps
over FY14E22E, with the rise in proportion of kitchen electrical appliances and
higheroutsourcing.TheFCFEmethodsubstantiatesourFY14EP/Emultipleof20
forTTKPscoreoperations.
Exhibit1: DCFValuationusingFreeCashFlowtoEquity TTKPrestige
(mn)

FY13E

FY14E

FY15E

FY16E

FY17E

FY18E

FY19E

FY20E

FY21E

FY22E

Revenue

14,092

17,351

21,168

25,591

30,709

36,237

42,760

49,174

56,550

65,032

EBITDA

2,198

2,776

3,259

3,812

4,513

5,253

6,113

6,932

7,859

8,973

EBIT

2,090

2,625

3,055

3,578

4,268

5,000

5,814

6,588

7,463

8,517

Depreciation(b)

108

150

204

234

246

254

299

344

396

455

Interest/BankCharges

163

139

75

89

107

129

155

186

223

267

Tax

567

742

916

1,093

1,288

1,508

1,752

1,982

2,314

2,637

16

16

26

42

54

71

92

119

143

158

OtherIncome
NetIncome(a)

1,372

1,755

2,083

2,425

2,910

3,412

3,971

4,503

5,024

5,721

EBITDAMargin(%)

15.6

16.0

15.4

14.9

14.7

14.5

14.3

14.1

13.9

13.8

EBITMargin(%)

14.8

15.1

14.4

14.0

13.9

13.8

13.6

13.4

13.2

13.1

TaxRate(%)

29.2

29.7

30.5

31.0

31.0

31.0

31.0

31.0

32.0

32.0

ChangeinWC(c)

469

334

825

1,039

349

472

525

497

543

590

1,100

300

400

400

369

355

419

482

554

637

ChangeinDebt(e)

487

(710)

FCFE(a+bcd+e)

398

561

1,062

1,220

2,438

2,838

3,327

3,868

4,323

4,949

398

561

1,062

1,220

2,438

2,838

3,327

3,868

4,323

92,380

481

780

768

1,314

1,311

1,317

1,312

1,257

23,011

Capex(d)

TerminalFCFE
TotalFCFE

87,431

DiscountedFCFE
CostofEquity(%)

16.7

TerminalCostofEquity(%)

12.0

TerminalGrowthRate(%)
IntrinsicValue(FY14Eonwards)
NumberofShares(Mn)
ValueperShareexcl.RE*Value(Rs)
ImpliedP/EMultiple
TerminalFCFE/IntrinsicValue(%)

6.0
31,953
11.3
2,823
18.2
69

Source:Company&KarvyInstitutionalResearch;*RE:RealEstate

September26,2012

TTKPrestige

PeerComparison
ThoughthebusinessmodelofTTKPrestigeisnotstrictlycomparablewiththose
of Hawkins, Butterfly Gandhimati Appliances (BGA), Bajaj Electricals (BJEL) &
Havells, they operate in same space with different set of products. However, we
haveprovidedvaluationdataforotherconsumptionrelatedcompanies.
TTKP commands higher P/E multiples than Havells and BJEL, as the former
generates higher EBITDA margins, returns rates and topline growth. TTKPs
multiple premium will reduce in the medium to longterm as it generates more
revenue from Kitchen Electrical Appliances (KEA) segment, which consists of
majorplayerssuchasHavells,BJEL,VGuard,PanasonicandPhilips/Preeti.

A.MultiplesGreaterthanPeers
Currently,theTTKPP/EratioissimilartothatofPageIndustriesanddiscountto
Jubilant FoodWorks. However, we believe that TTKP may not get P/E ratios
similar to that of Page Industries and Jubilant FoodWorks, as the shelflife of
TTKPs products is 35 years, while the lifespans of Page and Jubilant products
areafewmonthsandafewhoursrespectively.
Exhibit2: PeerValuationTable
CMP

(Rs)

P/E(x)
FY13E

TTKPrestige
3,787
BajajElectricals
201
HavellsIndia
621
OtherConsumptionBasedCompanies
PageIndustries*
3,207
JubilantFoodWorks*
1,299

EPSGrowth(%)

EBIDTAMargin(%)

EV/EBIDTA(x)

Price/Sales(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

31.1
15.6
17.6

24.4
11.9
14.9

21.4
9.3
19.1

27.8
30.5
18.4

15.6
7.8
10.5

16.0
8.4
10.9

19.3
8.1
11.0

15.3
6.8
9.4

3.04
0.56
1.07

2.47
0.49
0.98

31.3
54.6

24.4
38.8

27.0
45.8

28.3
40.6

20.2
18.8

20.3
19.2

19.6
27.5

15.2
19.9

4.12
5.90

3.23
4.35

Source:Bloomberg&KarvyInstitutionalResearch

OurView:TheKEAsegmentismorecompetitiveasnosingleplayercommands
over20%marketshareinanyoftheproductsthattheyoperate,whereasTTKP
&Hawkinstogetherconstitute80%ofthemarketshareinpressurecookers.

B.ReturnstoDeclineduetoLowerAssetTurnoverandEBIT
Margin
TTKPhasgenerated~4555%ROEinthelastthreeyearsduetohigheroutsourcing
andinturnhigherassetturnover.
Exhibit3: DuPontAnalysis
DuPontAnalysis
TaxBurden(%)
InterestBurden(%)
EBITMargin(%)
TotalAssetT/O
FinancialLeverage
ROE(%)

FY06
59.3
64.5
8.4
2.1
2.2
15.0

FY07
70.9
67.3
8.7
2.4
2.3
23.0

FY08
82.0
69.6
9.3
2.6
2.0
28.0

FY09
77.2
79.9
9.0
3.5
1.5
29.2

FY10
67.8
95.4
14.7
4.3
1.1
46.4

FY11
69.7
96.5
16.3
4.6
1.0
53.4

FY12
69.4
94.0
15.7
4.3
1.1
47.6

FY13E
70.8
92.3
14.9
3.6
1.1
40.4

FY14E
70.3
94.7
15.2
3.5
1.1
38.2

FY15E
69.5
97.6
14.5
3.5
1.0
35.0

FY16E
69.0
97.5
14.1
3.4
1.0
32.5

Source:Company,KarvyInstitutionalResearch

OurView:TTKPmaynotbeabletoenjoythesimilarassetturnoversdueto
recent capex and lower EBIT margin, which will lead to lower ROE, going
forward.

September26,2012

TTKPrestige

RationaleforSELLRecommendation
Ourinvestmentthesisisbasedonfollowingpremises:

Indias Consumer Appliances

SectortoSustainDoubledigit
Growth
Indias consumption is poised to
grow at a faster pace in coming
years, driven by favourable
demographics
and
higher
disposable incomes. The domestic
consumer appliances sector is quite
attractive due to the extraordinarily
low levels of penetration. We
believe that the macroeconomic
conditions would provide a strong
boost to the consumer appliances
sector,goingforward.
PleaserefertoourThematicReport
Consumer Appliances: Rising
Affluence
&
Favourable
Demographics,dated12thApr12.

1.ImprovementinMarketSharetoTakeaBreather
2.OurDistributorSurveyRevealsSubstantialVolumeDegrowthacrossSegments
3.CompetitiveAdvantageinPressureCookersmaynotbeextendedtoKEA
4.SixCylinderPolicymaynotHikeInductionCooktopSales
5.CapacityConstraintstoRecedeEBITDAMarginsfromFY15Eonwards
6.KitchenElectricalAppliancestoDragMargins
7.InternationalCollaborations
8.USPatentBoostExportofMicrowavePressureCookers
9.DistributionNetworkinnonSouthernIndianeedsImprovement

1.ImprovementinMarketSharetoTakeaBreather
Inorganizedpressurecookerssegment,themarketshareofTTKPrestige(TTKP)
has increased by 8% in last five years. TTKP & Hawkins dominate this segment
with combined market share of 7580%. While the volume of TTKPs pressure
cookershasgrownby23%CAGRinFY0711,Hawkinsrecordedvolumegrowth
at 14% CAGR. TTKP has gained market share from Hawkins due to capacity
constraints at the latter due to issues relating to pollution and labor matters.
Hawkinscurrentlyrunsatacapacityutilizationof~45%duetotheaboveissues.
OurdistributorsurveyhasindicatedthatHawkinscouldnotmeetthedemandin
South India despite consistent demand from distributors and dealers. Hawkins
informed that it resolved the labor issues by reaching an agreement with labor
union, but the Company is yet to resolve pollution issues raised by Punjab
PollutionControlBoard.
OurView:TTKPrestigewilllosesomemarketsharetoHawkinsoncethelatter
resolvesitspollutionissuesandincreasesproduction.

2. Our Distributor Survey Reveals Substantial Volume

DegrowthacrossSegments
We have surveyed TTKP distributors in major cities i.e. Chennai, Bangalore,
Hyderabad,NewDelhiandMumbaitogaugethegrowthratesofmajorproducts.
OurView:Thesurveyrevealsthatthe
volumegrowthinPressureCookers&
NonStickCookwaredeceleratedtohigh
singledigits,&thevolumegrowthinKEA
includinginductioncooktops
decreasedtoteens.

Chennai: The volume growth rate in Pressure Cookers and KEA has been
highsingle digits and highteens respectively. Credit terms for the Pressure
CookersandKEAare015daysand3060daysrespectively.

Bangalore: The volume growth rate in Pressure Cookers and KEA has been
midsingledigitsand10%,respectively.CredittermsforPressureCookersand
KEA are 1530 days and 3060 days respectively. It is also revealed that
intensifyingcompetitionleadstomargincompression.

Hyderabad:ThevolumegrowthrateinPressureCookersandKEAhasbeen
midsingledigitsandteensrespectively.CredittermsforPressureCookers&
KEAare07daysand3045daysrespectively.

New Delhi: The growth rate in Pressure Cookers and KEA has been high
teens.CredittermsforPressureCookers&KEAare030daysand3045days,
respectively.

Mumbai: The credit terms for Pressure Cookers & KEA are 3060 days.
Hawkins and Nirali are the leaders in Pressure Cookers and NonStick
Cookwarerespectively.

September26,2012

TTKPrestige

OurView:TTKPsgrowthinKEA
segmentwilldeclineto~30%inFY1215E
from65%CAGRinFY0812.

OurView:TTKPsdebtorswillrise
significantlywiththeriseinrevenue
shareasapercentageoftotalsalesof
KEAsegmentandnonSouthIndia.

A. Growth coolsoff in Induction Cooktops, Highest Growth Product: Our

surveyhasrevealedthatthevolumegrowthrateforInductionCooktopswhich
hasbeengrowingover100%inlastthreeyearsandcontributing~15%toTTKPs
totalrevenueinFY12hascooledoffto20%.Thesurveyhasalsoindicatedthat
lackofpowersupplyandriseinpowercosthavereducedsalesofInductionCook
tops to some extent. Volume growth rates in the rest products in KEA segment
havealsodeclinedtomidteens.
B. Relaxed Credit Terms in KEA Segment to Increase Debtors: We learnt that
TTKP provides 030 days credit on products i.e. Pressure Cookers & NonStick
Cookware. However, TTKP has relaxed credit days of 3060 on KEA, as the
Companyisnotthemarketleaderinthesegment.Moreover,TTKPprovides015
days of credit on Pressure Cookers in South India and 1530 days in nonSouth
India,wheretheHawkinsisthemarketleaderinPressureCookers.

3. Competitive Advantage in Pressure Cookers may not

beextendedtoKEASegment
We believe TTKP may not be able to enjoy similar competitive benefit in KEA
segment as it enjoys in Pressure Cooker segment, as it is the leader with 40%
market share in latter segment while competing with players i.e. Havells, Bajaj
Electricals,PanasonicandPreeti/Philipsintheformersegment.TTKPisamarket
leader in Induction Cooktops with 20% market share while its market share in
products in KEA segment is in highsingle digits. TTKP outsources most of its
KEAs, especially where it does not have technical expertise. Moreover, the
organized pressure cooker market is closer to duopoly whereas KEA segment
marketsrepresentoligopolies.

4. SixCylinder Policy may not Aid Induction Cooktop

SalesGrowth
Government of India (GoI) has recently issued a policy statement that it would
providesixcylinderstoeachfamilyonsubsidizedpricesandremainingcylinders
willbesoldatmarketprices.Webelievetheimplementationoftheabovepolicy
may not boost induction cooktop sales to a great extent due to the following
reasons.

CongressPartyhasaskedstategovernments,whichareruledbytheirparty,to
increasenumberofsubsidizedcylindersfrom6to9.

TTK Prestige generates 62% of sales from South India, which is a power
deficientregion.PercentageofNonSouthIndiasaleshasnotincreasedmuch
duringthelastthreeyears.

Power cuts are in the range of 13 hours during peak hours which is also
cooking time in Hyderabad and Chennai. TierII/III cities experience power
cuts in the range of 56 hours during peak hours. The situation will even
worseninsummers.

South Indias power supply deficit has increased to 16% in August 2012 as
against4%inAugust2011.

PowersituationinSouthIndiamaynotbeimprovedinnexttwoyearsdueto
coal supply issues and state governments have not increased power
generationcapacitiesintherecentpast.

Power supply to South India from rest of the country is limited by power
transmissionconstraints,whichcannotbeimproveduntilJanuary2014.

September26,2012

TTKPrestige

ProspectiveInductioncooktopbuyersneedtobuyanewsetofutensilsalong
withinductioncooktops.

Exhibit4: PowerDeficitSituationinSouthIndia
PowerDeficit(%)

Aug12

Aug11

AprAug12

AprAug11

AndhraPradesh

20.9

0.3

15.1

8.4

Karnataka

16.2

7.3

13.1

11.4

TamilNadu

14.0

4.4

14.6

11.3

2.2

3.4

3.1

8.0

16.0

4.4

13.4

7.2

Kerala
SouthernRegion

Source:MinistryofPower,GoI

5.CapacityConstraintstoRecedeEBITDAMarginsfrom
FY15Eonwards
TTKPhasbeenoncapexdrivesinceFY11andspentRs.1.9bnuntilQ4FY12,while
the Company mulls spending another Rs. 1.1 bn in FY13E to double its annual
nonstick cookware capacity to 12 mn pieces and increase the annual induction
cooktopscapacityto1mnpieces.ItalsoplanstospendRs.200mninFY14Eas
maintenance capex. TTKP generates an EBITDA margin of ~19% on inhouse
manufacturedproductsand~12%onoutsourcedproducts.
OurView:TTKPscapacityutilizationwillpeakbyFY14E,asinitsdrivetoboost
sales it has to hike inhouse capacity or rely on outsourcing after FY14E. While
the 1st option will lead to decreased free cash flows, increased debt levels,
depreciation and interest and the 2nd option will result in decreased EBITDA
margin.BoththeoptionswilladverselyimpactTTKPsPATmargins,cashflows,
returnratiosandvaluationsfromFY15Eonwards.

Exhibit5: Inhouse/Outsourcedmanufacturinginformation
ProductSegment

Remarks

PressureCookers
&Pans

InhouseMfg:TTKPhasexpandedproductioncapacityto8mn,whichwebelieveissufficientuntilFY14E.The
CompanyhastoeitherincreasemfgcapacityoroutsourcemfgtomeetdemandfromFY15Eonwards
Inhouse&OutsourcedMfgtillFY12:TTKPhasexpandedproductioncapacityto6mninFY12Eandwillbefurther
expandedto12mnbyFY13E.WebelievetheCompanyhastoeitherincreasemfgcapacityoroutsourcemfgtomeet
demandfromFY15Eonwards

Nonstick
Cookware
GasStoves

OutsourcedMfg:

KitchenElectrical
Appliances

OutsourcedMfgtillFY12:TTKPhasbuiltmfgfacilityforinductioncooktopsfor~1mnpieces,anditplanstooutsource
aportionofinductioncooktops.Otherproductsi.e.Mixers/Grinders,Juicers,andKettleswillbeoutsourced

Source:Company,KarvyInstitutionalResearch

Exhibit6: InstalledCapacity(mn)
ProductSegment
PressureCookers
NonstickCookware
InductionCooktops

FY09
4.0
1.8
NA

FY10
4.8
2.0
NA

FY11
4.8
2.0
NA

FY12
8.0
6.0
NA

FY13E
8.0
12.0
1.0

FY14E
8.0
12.0
1.0

FY15E
8.0
12.0
1.0

FY16E
8.0
12.0
1.0

FY10
2.8
1.9
NA

FY11
3.7
3.5
NA

FY12
4.5
5.1
0.9

FY13E
5.3
6.1
1.2

FY14E
6.1
7.3
1.6

FY15E
7.1
8.7
2.0

FY16E
8.1
10.5
2.7

Source:Company,KarvyInstitutionalResearch

Exhibit7: SalesVolume(mn)
ProductSegment
PressureCookers
NonstickCookware
InductionCooktops

FY09
2.1
1.2
NA

Source:Company,KarvyInstitutionalResearch

September26,2012

TTKPrestige
Exhibit8: Production(mn)
ProductSegment

FY09

FY10

FY11

FY12

FY13E

FY14E

FY15E

FY16E

PressureCookers

2.3

2.8

3.9

4.5

5.3

6.1

6.4

6.4

NonstickCookware

1.3

1.7

1.7

5.1

6.1

7.3

8.7

9.6

InductionCooktops

NA

NA

NA

NA

0.8

0.8

0.8

0.8

Source:Company,KarvyInstitutionalResearch

Exhibit9: CapacityUtilization(%)
ProductSegment

FY09

FY10

FY11

FY12

FY13E

FY14E

FY15E

FY16E

PressureCookers

57.1

57.6

80.9

55.6

66.8

76.8

80.0

80.0

NonstickCookware

70.5

85.6

85.0

84.3

50.6

60.7

72.9

80.0

InductionCooktops

NA

NA

NA

NA

80.0

80.0

80.0

80.0

Source:Company,KarvyInstitutionalResearch

Exhibit10: OutsourcingPercentage(%)
ProductSegment

FY09

FY10

FY11

PressureCookers

2.1

9.4

21.2 NeedCapexinFY14E.

NonstickCookware

11.6

52.0

8.5 NeedCapexinFY15E.

NA

NA

NA

NA

33.9

49.2

60.9

InductionCooktops

FY12 FY13E FY14E FY15E FY16E Remarks

69.9

RecentCapexisnotgoodenoughfor100%in
housemanufacturingofinductioncooktops.

Source:Company&KarvyInstitutionalResearch

ImpactofHigherCapex&OutsourcingonMargins:TTKPhastospendRs.33.5
bn in FY1415E to maintain 100% inhouse manufacturing in Pressure Cooker &
NonStickCookwaresegments.IthastoraiseRs.2.5bntomeetthecapexplan,but
interestonnewloancoupledwithhigherdepreciationwilldragitsPATmargins
OurView:TheexpectedEBITDAMof
by 80 bps. Moreover, ~4550% of sales have to be outsourced from FY14FY15E
16.0%inFY14Ewillbethehighestmargin
thatTTKPwillachievewithlatestcapex onwards in case TTKP wont undertake the aforementioned capex. We believe
andcurrenttrendofrawmaterialprices. that the expected higher outsourcing will reduce TTKPs EBITDA & PAT
marginsby~100bpsand~70bps,respectively.

6.KitchenElectricalAppliancestoDragMargins
TTKP generates an EBITDA margin of~19% oninhouse manufactured products
and ~12% on outsourced products. TTKPs sales in Kitchen Electrical Appliances
OurView:TTKPsoutsourcingpercentage
(KEA) segment have been outgrowing its rest segments and we believe the
willincreasewiththeriseinsalesinKEA
Company will be able to continue the same in future. TTKPs outsourcing
segment.Higheroutsourcingwilldecrease
percentagewouldincreaseafterFY14Easitdoesntmakemucheconomicalsense
EBITDAmarginsofthecompany.
toinvestincapacityforsmallKEAsegment.
Exhibit11: RevenueContributionPercentageofeachSegment
RevenueContribution(%)

FY08 FY09 FY10 FY11 FY12 FY13E FY14E FY15E FY16E Comment

Pressurecookers

55

53

47

41

37

36

34

33

32

NeedscapexinFY14E

Nonstickcookware

16

15

17

20

20

19

19

19

19

NeedscapexinFY15E

GasStoves

10

10

12

10

KitchenElectricalAppliances 14
Other

17

20

25

31

35

37

40

41

Outsourced
Majorportionofinductioncooktopsandrestof
kitchenelectricalappliancesareoutsourced
Outsourced

Source:Company,KarvyInstitutionalResearch

September26,2012

TTKPrestige

7.InternationalCollaborations
TTKPhastiedupwithvariousMNCstointroducenewproductsinIndiathrough
cobrandingtoleverageitsdistributionnetwork.

Alliance with USbased World Kitchen: Through this alliance TTKP will
introducehighendTableware/Cookware&StorewarewithPrestigelogo.

Alliance with Germanybased Schott AG: TTKP has launched gas stoves
made from Schott tempered flat glass and an induction cooktop with glass
ceramiccooktops.

AlliancewithSwitzerlandbasedVestergaardFrandsonGroup:Throughthis
allianceTTKPwillmanufactureandmarketwaterfiltersacrossIndia.

OurView:ItwillbedifficultforTTKPto
Water Filter Market: Water Purifier market estimated to be Rs. 16 bn is
gainnotablemarketshareinwater
purifiersegmentamidintensecompetition dominated by players i.e. Hindustan Unilever, Kent Healthcare, Tata Chemicals
andEurekaForbes.Themarketissetfortoughcompetitionasthebiggiessuchas
fromthemarketleaders.

Godrej,PanasonicandLGarealsogearinguptotakeontheexistingplayers.

8. US Patent to Boost Export of Microwave Pressure

CookersinFY13E
TTKP has received US patent for Microwave Pressure Cookers recently and has
beenexportingthesametotheUS,Japan,theUK,Germany,France,China,Korea
andMiddleEast.ItManagementexpectstoincreaseexportquantityfrom0.17mn
inFY12to0.8mnpiecesinFY13E.
Our View: The rise in exports will boost TTKPs pressure cooker sales by 8%,
while its overall sales would grow by 3% in FY13E. TTKPs exports as a
percentageofsaleswillriseto6%inFY13Efrom3%onFY12.
Salesbydistributionchannel
FY11
Institut
ions,
12%
Own
Retail,
15%
Moder
n
Trade,
10%

9. Distribution Network in nonSouth India needs

Improvement
TTKP has a total retail network of 30,000 outlets. It has multiple distribution
channels i.e. traditional retail outlets, modern trade formats, own retail outlets,
hyper/supermarketsandinstitutionssuchasHPCL,BPCLandmilitarycanteens.

Traditi
onal
Retail,
63%

Exhibit12: TTKPrestigeDistributionStructure

Source:Company,KarvyInstitutionalResearch

SalesbyregionFY12
North
and
East,
20%
West,
15%

Export
s,3%

South,
62%

Source:Company,KarvyInstitutionalResearch

Source:Company&KarvyInstitutionalResearch

BrandedRetailOutlets:TTKPhasalsoincreaseditsownbrandedretailoutletsi.e.
Prestige Smart Kitchen (PSK) that covers 21 states and 179 towns in India. The
numberofPSKoutletsincreasedto356inFY12from51inFY05.

September26,2012

TTKPrestige
Exhibit13: NumberofPrestigeSmartKitchen(PSK)Outlets
400
350
300
250
200
150
100
50
0
FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

NumberofPSKOutlets
Source:Company&KarvyInstitutionalResearch

OurView:WhileTTKPhasstrongdistributionnetworkinSouth,itsdistribution
networkinnonSouthIndianeedsimprovement.ItsKEAsegmentcompeteswith
major players i.e. Bajaj Electricals (BJEL) and Havells who having networks
consisting of 55,000 and 45,000 outlets. BJEL is spread across India and Havells
presence is strong in Northern, Eastern and Southern parts. Hawkins, TTKPs
competitorinpressurecookers,hasdevelopeditsforteinWestandNorthIndia.

Karvyvs.Consensus
Exhibit14: Karvyvs.Consensus

EPS

SalesGrowth(%)

EBITDAGrowth(%)

NIGrowth(%)

EBITDAMargin(%)

NIMargin(%)

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

Karvy

121.6

155.5

27.7

23.1

24.4

26.3

21.4

27.8

15.6

16.0

9.8

10.1

Consensus*

128.4

166.8

30.3

26.1

23.9

28.5

28.4

30.2

15.4

15.7

10.1

10.5

Difference

(6.8)

(11.4)

(2.6)

(3.0)

0.5

(2.2)

(7.0)

(2.4)

0.2

0.3

(0.4)

(0.3)

Source:Company&KarvyInstitutionalResearch,*Bloomberg

10

September26,2012

TTKPrestige

KeyAssumptions&Estimates
Exhibit15: KeyAssumptions&Estimates
KeyFinancials
(Rsmn)
RevenuebyProduct

Estimates
FY11

Growth(%)

FY12 FY13E FY14E FY15E

Pressurecookers&Pans

3,169

4,132

5,124

6,046

7,134

30.4

24.0

18.0

NonStickCookware

1,540

2,247

2,764

3,399

4,079

45.9

23.0

23.0

GasStoves
KitchenAppliances
NewJVs
Others
NetRevenues
EBITDA

808 1,008 1,160 1,334 1,467

1,929 3,494 4,752 6,178 8,031

250
400
520
266
280
288
297
306
7,636 11,034 14,092 17,351 21,168

24.7
81.1

15.0
36.0

3.0
27.7

15.0
30.0
60.0
3.0
23.1

EBITDA

1,253

1,768

2,198

2,776

3,259

41.0

24.4

26.3

EBITDA(%)

16.4

16.0

15.6

16.0

15.4

Depreciation
Otherincome
EBIT

43
43
1,254

62
31
1,736

108
16
2,106

150
16
2,641

204
26
3,081

46.5
(28.4)
38.5

72.8
(48.7)
21.3

39.2

25.4

44

103

163

139

75

133.7

57.3

(14.3)

AdjustedPBT
Tax
Taxrate
Reportednetprofit
NetProfit(%)
CFO(a)

1,209
366
30.3
838
11.0
500

1,632
499
30.6
1,134
10.3
841

1,943
567
29.2
1,377
9.8
676

2,502
742
29.7
1,760
10.1
1,126

3,006
916
30.5
2,091
9.9
790

35.0
36.3

28.8
31.0

35.4

19.0
13.6

21.4

CFI(b)

(212) (1,540) (1,100)

(300)

(400)

FCF(a+b)
CFF(c)

288
(192)

(699)
387

(424)
487

826
(710)

390
(250)

96

(312)

63

116

140

InterestExpense

TotalChangeinCash

Comments

FY12 FY13E FY14E FY15E

5.5
44.5

27.8

Marketleadership,strongbrandequityand
exports
Risingmiddleclass,strongbrandingtosustain
20.0
growth
10.0
30.0 Slowdownininductioncooktops&KEA.
30.0 IntroductionofnewproductsfromJVs.
3.0
22.0
18.0

17.4 Withriseinoutsourcedmfg,margintodipby40
bpsinFY13E&riseby40bpsinFY14Ewithrise
ininhousemfg.
36.1
63.2
16.6
InterestexpensewillriseasTTKPraisesdebtin
(46.5)
FY13Etomeetcapexrequirements.
20.2
23.4
18.8


TTKPwillspendRs.1.11bninFY13E;Itwill

resorttomaintenancecapexinFY14E
Cashproceedswillbeusedtorepaydebtand
investinliquidassets

Source:Company&KarvyInstitutionalResearch

KeyRisks
UpsideRisks:

DeclineinCommodityPricesamidStrongerINR:Anydecreaseinaluminum
prices and stronger INR might increase the margins and profitability of the
Company.

SuccessofNewlylaunchedProducts:TTKPhastiedupwithvariousMNCs
to introduce new products in India. Hence success of these newly launched
productswillbecatalystforTTKPsgrowth.

Significant Incremental Export Volume: TTKP has received US patent for

Microwave Pressure Cooker and hence any significant incremental rise in
exportvolumewillalsoboostprofitabilityoftheCompany.

DownsideRisks:

IntenseCompetition:Intensecompetitioninconsumerrelatedbusinessunits
mayimpactTTKPsprofitmargins,asthebarrierstoentryintheindustryare
low.

Extended Slowdown in Domestic Economy: Continued slow growth in

IndiasGDPmightreduceTTKPsgrowthprospects.

11

September26,2012

TTKPrestige

FinancialOverview
A. Lower Growth in KEA Segment to Drag Topline
Growth
TTKPs revenue grew by ~50% CAGR in the last two years led by Kitchen
ElectricalAppliances(KEA)withCAGRof83%,whilethesalesofInductionCook
topsquadrupled.TheKEAsegmenthasincreaseditsshareofrevenuesfrom20%
inFY10to31%inFY12.
Exhibit16: RevenueGrowthRates(%)
100
90
80
70
60
50
40
30
20
10

FY2009

FY2010

FY2011

FY2012

KitchenElectricalAppliances

FY2013E

FY2014E

FY2015E

CompanyRevenueGrowth

Source:Company&KarvyInstitutionalResearch

OurView:TTKPstoplinegrowthratewilldeclineto24%CAGRinFY1215E,as
thesalesofInductionCooktopsandotherappliancesdecreasetohighteens.

B.AssetTurnoverRatiotoDecreaseduetoCapex
TTKP has increased its Asset Turnover Ratio from 3.5 in FY09 to 4.3 in FY12
through high revenue growth, increased capacity utilization and outsourced
manufacturing.
Exhibit17: Revenue&AssetTurnover
25,000

5.0
4.6
4.3

20,000

4.3

4.0
3.6

3.5

3.5

3.5

15,000

3.0

10,000

2.0

5,000

1.0
4,013

5,079

7,636

11,034

14,092

17,351

21,168

FY2009

FY2010

FY2011

FY2012

FY2013E

FY2014E

FY2015E

0.0
Revenue

AssetTurnover

Source:Company&KarvyInstitutionalResearch

Our View:The Asset TurnoverRatiowill decrease to 3.5 by FY14E due to recent

and proposed capital investments in FY12 & FY13E and reduced reliance on
outsourcedmanufacturing.

12

September26,2012

TTKPrestige

C.TTKPtoReachEBITDAMarginOverhanginFY14E
TTKPs EBITDA margin grew by 660 bps to 16.4% in FY0911, while its margin
decreased by 40 bps in FY12 due to higher outsourcing and raw material prices.
TTKPsmarginislikelytodecreasefurtherby40bpsinFY13Eandriseby40bps
to16.0%inFY14Eduetotheongoingcapitalinvestments,whichwillincreasein
housemanufacturingandinturnthemargin.
Exhibit18: EBITDA&EBITDAMargin
16.4

3,500

16.0

15.2

3,000

15.6

17.0

16.0
15.4

16.0
15.0

2,500

14.0

2,000

13.0

1,500

12.0

1,000

11.0

9.8

10.0
500
393

774

1,253

1,768

2,198

2,776

3,259

FY2009

FY2010

FY2011

FY2012

FY2013E

FY2014E

FY2015E

9.0
8.0

EBITDA

EBITDAMargin

Source:Company&KarvyInstitutionalResearch

Ourview:TTKPwillbeabletoreporthighestmargininFY14Ewiththeongoing
capitalinvestments,andtheCompanyneedstoinvestinnewcapacitiestomeet
growing demands for Pressure Cookers & NonStick Cookware from FY15E
onwards.EBITDAMarginwilldecreasefromFY15EastheoutsourcingfromKEA
and/orPressureCookersegments&NonstickCookwareincrease.

D.NetIncomeMargintoReduceinFY13E
TTKPsnetincomemargingrewby480bpsto10.3%inFY0912,whichislikelyto
declineby50bpsto9.8%inFY13EduetocompressioninEBITDAmargin,higher
depreciationandinterest.
Exhibit19: NetIncome&NetIncomeMargin
2,500

Ourview:Thenetprofitmarginwill
declinefromFY15Eonwards,asthe
capacityutilizationwillpeakbyFY14E.
Initsdrivetoboostsales,TTKPhasto
hikeinhousecapacityorrelyon
outsourcingafterFY14E.Whilethe1st
optionwillleadtodecreasedfreecash
flows,increaseddebtlevels,depreciation
andinterestandthe2ndoptionwillresult
indecreasedEBITDAmargin.Boththe
optionswilladverselyimpactTTKPs
PATmargins,cashflows,returnratios
andvaluationsfromFY15Eonwards.

11.0

10.3

10.3

9.8

10.1

12.0
9.9
10.0

2,000

8.0
1,500

5.6
6.0

1,000
4.0
500

2.0
224

524

838

1,134

1,377

1,760

2,091

FY2009

FY2010

FY2011

FY2012

FY2013E

FY2014E

FY2015E

0.0

NetProft

NetProfitMargin

Source:Company&KarvyInstitutionalResearch

13

September26,2012

TTKPrestige

E. ROCE & ROE to Decline due to Ongoing Capex and

LowerEBITMargin
TTKPs ROCE & ROE have improved due to highAsset Turnover and increased
EBIT margins. We believe ROCE & ROE will decline going forward due to on
goinginvestmentincapextoreducerelianceonoutsourcedmanufacturing.
Exhibit20: ReturnRatio(%)
60.0

53.4
47.6

46.4

50.0

40.4

51.1
46.0

40.0
29.2

35.0

42.0
37.9

30.0
20.0

38.2
37.2

35.6

32.5
32.9

24.3

10.0

FY2009

FY2010

FY2011

FY2012

ROCE

FY2013E

FY2014E

FY2015E

FY2016E

ROE

Source:Company,KarvyInstitutionalResearch

OurView:TheneedforhighercapitalinvestmentandriseinsalesinKEAsegment
willreduceROCE&ROE,goingforward.

14

September26,2012

TTKPrestige
Exhibit21: Profit&LossStatement
(Rsmn)

FY10

FY11

FY12

FY13E

FY14E

FY15E

Netrevenues

5,079

7,636

11,034

14,092

17,351

21,168

26.6

50.3

44.5

27.7

23.1

22

2,686

4,409

6,644

8,484

10,228

12,374

393

530

730

960

1,217

1,527

OperatingExpenses

1,227

1,443

1,893

2,450

3,130

4,009

Operatingexpenses

4,306

6,382

9,267

11,894

14,575

17,909

774

1,253

1,768

2,198

2,776

3,259

97

62

41

24.4

26.3

17.4

15.2

16.4

16

15.6

16

15.4

Otherincome

11

43

31

16

16

26

Interest

35

44

103

163

139

75

Depreciation

36

43

62

108

150

204

714

1,209

1,632

1,943

2,502

3,006

%Growth
RawMaterial
Staff

EBIDTA
Growth(%)
EBIDTAmargin(%)

ProfitBeforeTax
Provisionfortax

230

366

499

567

742

916

Effectivetaxrate(%)

32.2

30.3

30.6

29.2

29.7

30.5

AdjustedNetProfit

485

843

1,134

1,377

1,760

2,091

116.5

74

34.4

21.4

27.8

18.8

524

838

1,134

1,377

1,760

2,091

%Growth
ReportedNetProfit

Source:Company,KarvyInstitutionalResearch

Exhibit22: BalanceSheet
(Rs.mn)

FY10

FY11

FY12

FY13E

FY14E

FY15E

113

113

113

113

113

113

Reserves&surplus

1,128

1,801

2,738

3,843

5,152

6,563

Shareholdersfunds

1,242

1,915

2,851

3,956

5,266

6,676

ShorttermLoans

14

26

160

LongTermLoans

28

43

197

550

TotalLoans

28

58

223

710

Equitycapital

Deferredtaxliability

31

33

68

1,301

2,005

3,142

4,666

5,266

6,676

835

892

2,029

3,525

3,945

4,428

Depreciation

430

473

522

630

780

985

Netblock

405

419

1,507

2,896

3,164

3,443

CapitalWIP

235

391

794

397

278

194

Investments

LTLoansandAdvances

119

97

138

123

126

Inventory

613

1,050

1,749

2,216

2,651

3,415

Debtors

603

747

1,060

1,411

1,771

2,204

Cash&BankBalance

440

535

223

286

402

542

2,081

3,322

4,435

5,573

6,704

8,723

266

380

684

830

1,001

1,219

Othercurrentliabilities

1,158

1,869

3,010

3,511

4,005

4,595

CurrentLiabilities

1,424

2,250

3,694

4,341

5,007

5,814

Netcurrentassets

657

1,072

741

1,232

1,697

2,909

1,301

2,005

3,142

4,666

5,266

6,676

TotalLiabilitiesandEquity
Grossblock

CurrentAssets
SundryCreditors

TotalAssets

Source:Company,KarvyInstitutionalResearch

15

September26,2012

TTKPrestige
Exhibit23: CashFlowStatement
(Rsmn)

FY10

FY11

FY12

FY13E

FY14E

FY15E

EBIT

738

1,211

1,705

2,090

2,625

3,055

(Inc.)/Decinworkingcapital

159

217

181

469

334

825

Cashflowfromoperations

897

994

1,525

1,621

2,291

2,230

Otherincome

11

43

31

16

16

26

Depreciation

34

43

49

108

150

204

35

44

103

163

139

75

Interestpaid()
Taxpaid()

230

366

499

567

742

916

Dividendspaid()

132

164

197

272

450

680

36

68

DeferredTaxLiability
Extraordinaries

40

586

500

841

676

1,126

790

Capitalexpenditure()

79

212

1,540

1,100

300

400

Netcashaftercapex

507

288

699

424

826

390

14

11

135

160

Netcashfromoperations

Inc./(Dec.)inshorttermborrowing
Inc./(dec.)inlongtermborrowing

179

15

154

353

550

Inc./(dec.)inborrowings

179

30

165

487

710

(Inc.)/Dec.ininvestments

222

222

250

Equityissue/(Buyback)

176

192

387

487

710

250

Openingcash

109

440

535

223

286

402

Closingcash

440

535

223

286

402

542

Changeincash

331

96

312

63

116

140

FY10

FY11

FY12

FY13E

FY14E

FY15E

52.9

57.7

60.2

60.2

58.9

58.5

7.7

6.9

6.6

6.8

7.2

Operating&Othercost/Sales(%)

24.1

18.9

17.2

17.4

18

18.9

RevenueGrowth(%)

26.6

50.3

44.5

27.7

23.1

22

EBIDTAMargins(%)

15.2

16.4

16

15.6

16

15.4

NetIncomeMargins(%)

9.5

11

10.3

9.8

10.1

9.9

ROCE(%)

42

51.1

46

37.9

37.2

35.6

46.4

53.4

47.6

40.4

38.2

35

CashfromFinancialActivities

Source:Company,KarvyInstitutionalResearch

Exhibit24: KeyRatios

RawMaterialCost/Sales(%)
ManpowerCost/Sales(%)

ROE(%)

Source:Company,KarvyInstitutionalResearch

Exhibit25: KeyRatios

FY10

FY11

FY12

FY13E

FY14E

FY15E

EPS(Rs)

42.8

74.5

100.1

121.6

155.5

184.7

P/E(x)

88.5

50.8

37.8

31.1

24.4

20.5

BV(Rs)

109.7

169.2

251.9

349.5

465.2

589.8

P/BV(x)

34.5

22.4

15

10.8

8.1

6.4

EV/EBIDTA(x)

54.8

33.8

24

19.3

15.3

13

Fixedassetsturnoverratio(x)

13.3

18.5

11.5

6.4

5.7

6.4

Debt/Equity(x)

0.02

0.03

0.08

0.18

8.4

5.6

3.9

3.1

2.4

EV/Sales(x)

Source:Company,KarvyInstitutionalResearch

16

InstitutionalEquitiesTeam
RangachariMuralikrishnan

HeadInstitutionalEquities /
Research/Strategy

+912261844301

muralikrishnan@karvy.com

ShridharIyer

HeadInstitutionalSales

+912261844302

shridhar.iyer@karvy.com

K.AnantRao

HeadSalesTrading&Derivatives

+912261844303

k.anantrao@karvy.com

UdayRaval

KarvyInc.USA

+12122674334

udayr@karvy.com

INSTITUTIONALRESEARCH

Analysts

Industry/Sector

DeskPhone

EmailID

DwaipayanPoddar

ChiefTechnicalStrategist

+912261844372

dwaipayan.poddar@karvy.com

HatimBroachwala,CFA

Banking

+912261844329

hatim.broachwala@karvy.com

JagadishwarPasunoori,CFA,FRM

MidCap

+914044857912

jagadishwar.p@karvy.com

ManojKumarManish

DerivativesResearch

+912261844327

manojkumar.m@karvy.com

MarutiKadam

Automobiles/Metals&Mining

+912261844326

maruti.kadam@karvy.com

MitulShah

Automobiles

+912261844312

mitul.shah@karvy.com

NishithSanghvi

Pharmaceuticals

+912261844325

nishith.s@karvy.com

NaveenTrivedi

FMCG

+912261844316

naveen.trivedi@karvy.com

PallavAgarwal

Metals&Mining

+912261844317

agarwal.pallav@karvy.com

PareshJain

BFSI

+912261844324

paresh.jain@karvy.com

ParikshitKandpal

Infra/RealEstate/Strategy

+912261844311

parikshit.kandpal@karvy.com

RahulSharma

Pharmaceuticals

+912261844310

rahul.sharma@karvy.com

RahulSingh

MidCap

+914044857912

rahulsingh@karvy.com

RajeshKumarRavi

Cement&Logistics

+912261844313

rajesh.ravi@karvy.com

RupeshSankhe

Power/CapitalGoods

+912261844315

rupesh.sankhe@karvy.com

VinayNair

Oil&Gas

+912261844319

vinaynair@karvy.com

INSTITUTIONALSALES

DineshBajaj

Sales

+912261844341

dinesh.bajaj@karvy.com

DipeshJain

Sales

+912261844342

dipesh.jain@karvy.com

R.Sriram

Sales

+912261844340

sriram.rangarajan@karvy.com

ShabbirDahodwala

Sales(USA)

+12122674334

shabbir@karvy.com

TejashGandhi

Sales

+912261844345

tejash.gandhi@karvy.com

INSTITUTIONALSALESTRADING&DEALING
BhaveshGandhi

InstitutionalDealer

+912261844368/69

bhavesh.gandhi@karvy.com

PrashantOza

InstitutionalDealer

+912261844370/71

prashant.oza@karvy.com

ParagShah

SalesTrader

+912261844364/65

parag.shah@karvy.com

SriramJagdish

SalesTrader

+912261844366/67

sriram.jagdish@karvy.com

GurdarshanSinghKharbanda

SalesTrader

+912261844368/69

gurdarshansingh.k@karvy.com

PRODUCTION

AsimKumarMohapatra

Editor

+912261844318

asim.mohapatra@karvy.com

VishalRandive

DatabaseAnalyst

+912261844321

vishal.randive@karvy.com

VijayalaxmiMoolya

Production

+912261844328

vijayalaxmi.m@karvy.com

StockRatings
Buy
Hold
Sell

:
:
:

AbsoluteReturns
>15%
515%
<5%

Forfurtherenquiriespleasecontact:

research@karvy.com
Tel:+912261844300

DisclosuresAppendix

Analystcertification
The following analyst(s), who is (are) primarily responsible for this report, certify (ies) that the views expressed herein
accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their)
compensationwas,isorwillbedirectlyorindirectlyrelatedtothespecificrecommendation(s)orviewscontainedinthis
researchreport.
Disclaimer
The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information
containedhereinisbasedonouranalysisanduponsourcesthatweconsiderreliable.We,however,donotvouchforthe
accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss
incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors.
Investorsmustmaketheirowninvestmentdecisionsbasedontheirspecificinvestmentobjectivesandfinancialpositionand
usingsuchindependentadvice,astheybelievenecessary.Whileactinguponanyinformationoranalysismentionedinthis
report,investorsmaypleasenotethatneitherKarvynorKarvyStockBrokingnoranypersonconnectedwithanyassociate
companiesofKarvyacceptsanyliabilityarisingfromtheuseofthisinformationandviewsmentionedinthisdocument.
The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above
mentionedcompaniesfromtimetotime.EveryemployeeofKarvyanditsassociatecompaniesarerequiredtodisclosetheir
individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and
investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this
recommendationhaseitherbeendisplayedorhasbeenforwardedtoclientsofKarvy.Allemployeesarefurtherrestrictedto
place orders only through Karvy Stock Broking Ltd. This report is intended for a restricted audience and we are not
soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an
invitation to make an offer, to buy or sell any securities, or any options, futures nor other derivatives related to such
securities.

KarvyStockBrokingLimited
InstitutionalEquities
OfficeNo.702,7thFloor,HallmarkBusinessPlaza,Opp.GurunanakHospital,Mumbai400051
RegdOff:46,RoadNo4,StreetNo1,BanjaraHills,Hyderabad500034.
KarvyStockBrokingResearchisalsoavailableon:BloombergKRVY<GO>,ThomsonPublisher&Reuters.