TTK Prestige (Buy)
Despite the challenging times, TTK Prestige has emerged stronger in FY21 and is set to benefit from a shortening replacement cycle and rising demand for kitchen upgradation. As a result, it can clock a 15-17 per cent CAGR in the next few years, which would be supported by EBITDA margin expansion in FY22 and FY23. FY22 capex of ₹50 crore could increase once clarity emerges regarding demand. To factor this in, we raise our FY23 revenue/net profit 4 per cent/14 per cent. Our FY22 estimates are largely unchanged considering the near-term headwind of demand uncertainty. TTK continues to innovate in all its product categories. It launched 15 SKUs in Q4 FY21 and intends to launch nearly 120 SKUs in FY22.