#ROE

In FY25, the company’s return on equity is envisaged to be marginally lower to 18.4%, due to a combination of lower financial leverage and asset turnover ratio. The company’s net worth as on 31st March 2025 increased by 1% YoY to ₹1,354 cr.

#MANAGEMENT

Management of the company continues to take several steps for its growth in the coming years such as right product mix, technology adoption in manufacturing, constant brand promotion through various marketing strategies, wide distribution and strong after sales service. Mr. Vikram Somany is known for hands-on involvement in all aspects of the business, from strategy initiation to execution. Mrs. Deepshikha Khaitan (Joint Managing Director) is actively associated with the company for over 8 years. Plays a key role in driving design innovation, product development, and R&D initiatives.

#COMPANY #POTENTIAL

• In the Union Budget FY26, the government launched a ₹1 lakh cr Urban Challenge Fund to transform Indian cities into future-ready growth hubs through targeted redevelopment and improved water and sanitation infrastructure. Additionally, the ₹15,000 cr Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund 2 aims to complete 100,000 housing units, building on the progress of SWAMIH Fund 1, which has already delivered 50,000 homes and is expected to deliver another 40,000 by 2025. • The trend in bathroom solutions continues to move in a positive direction. It is projected that by 2047, India may require approximately 23 cr additional housing units, with a significant shift toward larger and more premium properties. This evolving preference is expected to drive demand for more spacious and high-quality bathroom solutions. • The global sanitaryware market is estimated to be valued at USD 57.28 billion (~₹4,75,000 cr) in 2025 and is projected to reach USD 79.93 billion (~₹6,63,000 cr) by 2030, growing at a CAGR of 6.9% during the forecast period. Within this landscape, the Indian sanitaryware sector is expected to reach a market size of approximately USD 948.5 million (₹7,900 cr) by 2025, growing at a CAGR of 7.9% from 2024 to 2029. Organized players dominate around 60% of the Indian market, catering primarily to premium segments, while the unorganized sector, which serves the mass market, holds less than 40%. The implementation of the goods & services tax (GST) has further accelerated the shift in product offtake from the unorganized to the organized sector. • The rising focus on wellness is a key growth driver for the company’s wellness segment. In 2023, the Indian spa market generated USD 1,691.2 million (~₹14,000 cr) in revenue, making up 5.5% of the Asia-Pacific spa market. As more people look to create spalike experiences at home, there is increasing demand for stylish and high-end bathroom products. This includes designer bathtubs, wellness-oriented shower systems, and hydrotherapy solutions that offer comfort, luxury, and relaxation.

#FUTURE #OUTLOOK

• The management has acquired land parcel in Gujarat for their upcoming greenfield sanitaryware facility. The land cost was ~₹25- ₹30 cr Construction is not envisaged to start in FY26, the expansion would be completed in ~18 months from the date of start. The phase 1 is budgeted to cost ~₹130 cr (including ₹25-₹30 cr already paid for land acquisition); this would generate a revenue of ~₹300 cr per annum. The management will revisit the start date of construction at the end of current year and will be based on the prevailing demand outlook and market environment. In the meantime, if there is a sudden jump in demand, the company is confident to manage the same based on increased inventory, better capacity utilization and a flexible outsourcing model. • The brownfield faucetware expansion program of one lakh SKUs per month to take the capacity to 4 lakh pieces per month. The total cost of the project will be ₹58 cr and has commenced in September 2023, there is a provision for it to go up to 6 lakh pieces capacity from 3 lakh to 4 lakh pieces in FY24. per month. This is to be funded from annual operating cash flow. It has completed the expansion to take the monthly production • Management was originally aiming of reaching revenue of ₹2,900 cr by September 2025, the target date has been recalibrated to March 2027 which is 16% CAGR (FY24-27) to be driven by higher volumes (+10-13%), better mix (4-6%) and improved realization (+2-3%). It also indicated current margins are sustainable with an upward bias. • These projections were based on anticipated market growth of 7%-8% in the sanitaryware segment and 12%-13% in faucetware, with an aim to outperform the market by 6%-7%. While actual market conditions have fallen short of these expectations, the company’s project pipeline remains strong. Once market conditions stabilize, the company expects to outperform the market by leveraging strong execution and well-defined strategic initiatives.

The company has revamped its Senator brand and launched the Luxe brand in the luxury segment as it plans to increase the contribution from the luxury segment to ~10% of sales by FY27, i.e., ~₹290-₹300 cr They plan to open ~40-45 Senator stores during FY26. Separately, Cera Luxe products are also set to be prominently showcased in over 50 stores by the end of FY26. Additionally, they are also strengthening their tile offerings with a focus on high-end value-added products, including large 6x4 slabs. • Management envisages EBITDA margins improving to ~16%-17% in the coming quarters, driven by a pickup in retail demand. This is expected to offset the impact of discounts, which are believed to have peaked and stabilized. Going forward, a gradual reduction in discounting is anticipated which would support margin expansion. outsourced products are now in-house, ensuring efficiency and adaptability. • Despite the weak demand, the company is maintaining its utilization, anticipating a demand revival. Faucetware output is flexible due to automation, while sanitaryware relies on skilled labor, making capacity reductions difficult. To balance production, some • The management foresees strong replacement demand in faucetware segment, increasing the growth opportunity for the company. The company anticipates renewed momentum in sanitaryware demand as the overall market environment improves in the coming quarters. Furthermore, the recently introduced Union Budget is expected to increase disposable income, leading to increased spends in building materials industry, further supported by governments focus on infrastructure spends.

Cera Sanitaryware 4500-4950
Expected level 6000
Support 3900

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TTK Prestige Limited company details report

TTK Prestige Limited predominantly operates in the Kitchen Appliances segment with a wide range of product categories that consist of pressure cookers, cookware, gas stoves and domestic kitchen electrical appliances. The company's brands include Prestige and Judge. Traditionally, it focused on the South Indian markets and to expand its addressable market, it leveraged its brand and expanded distribution network in the last few years to penetrate the Western, Northern and Eastern regions. The company has six manufacturing plants in two in Hosur (Tamil Nadu), one each in Coimbatore, Karjan, Kharadi and Roorkee. In 9M FY25, it introduced ~190 new SKUs (stock-keeping units) covering pressure cookers, induction cook tops, mixer grinders, rice cookers, gas stoves, and other small electric/non-electric appliances. It sells its products through multiple distribution channels supported by a large network of dealers. It markets its products through authorized direct dealers, large format stores, institutions (large corporate houses that place bulk orders for gifting), multi-level marketing chains, e-commerce channel and franchise retail outlets – Prestige Xclusive. The number of outlets as on 31st December 2024 was 665. The spread of the network is also evenly distributed between metros, mini-metros, tier 1, tier 2, and tier 3 cities. Company has an overseas subsidiary by name TTK British Holdings Limited which was incorporated in the United Kingdom in 2016. TTK British Holdings Limited holds the entire share capital of Horwood Homewares Limited which is the operating subsidiary. It also holds 51% stake in Ultrafresh Modular Solutions Limited, India (engaged in the business of Modular Kitchens and kitchen appliances).

Revenue breakup

#SALES #GROWTH

In FY25, revenue was ₹2,715 cr, up by ~1% YoY. Sales (standalone) in appliance, cooker, cookware & others was ₹1,184 cr, ₹785 cr, ₹432 cr & ₹129 cr, respectively. The YoY growth in appliance, cookware and others was ~0.4%, 7.3% and 5.9%, respectively. Cookers posted de-growth of 5.9% YoY. Ultrafresh recorded revenue of ₹33 cr (v/s ₹31 cr in FY24) and Horwood witnessed a decrease of 1.4% YoY. The company faced a sales loss impact of ₹125 cr due to decline in alternate channels as the MFI (micro finance institution). The Canteen Stores Department (CSD) channel also remained subdued. However, the traditional channels saw ~8% YoY growth. The repositioning of the Judge brand began to yield results, with the brand showcasing strong growth. In FY25, revenue from the brand increased to ₹68 cr. In FY24, the net sales was ₹2,678 cr and de-grew by 3.6% YoY.

#EBITDA #GROWTH

In FY25, EBITDA de-grew by 15% to ₹258 cr. Gross profit saw an uptick of 3% YoY. EBITDA was impacted by the additional charges incurred as soft operational expenses for long-term growth strategy and plan during the year. Aluminum and stainless steel are the key raw materials for the pressure cooker and cookware industry. In FY24, the EBITDA declined by 15.3% YoY to ₹304 cr. While the expenses remained elevated, the sales was on a declining trend thereby impacting the operating profit.

#PAT #GROWTH

In FY25, PAT declined by 52% YoY to ₹108 cr. It was impacted by an exceptional loss arising from provision for impairment of goodwill in UK subsidiary of ~₹71 cr. Tax rate for FY25 was 38.1% v/s 25.2% in FY24. In FY24, the net profit declined by 11.7% YoY and stood at ₹225 cr.

#EBITDA #MARGIN

In FY25, EBITDA margin contracted by 185 bps YoY to ~9.5% on account of higher employee benefit expense and other expenses. However, gross margin expanded by 82 bps YoY to 42% as the company took cost savings initiatives at the raw material and overall costing level. EBITDA margin stood at 11.3% in FY24. Although the raw material prices remained stable throughout the year, it witnessed an increase in Q4 FY24 and the decline in sale of all its product categories did not lead to margin expansion.

#PAT #MARGIN

In FY25, PAT margin stood at 4%, contraction of 444 bps YoY, majorly impacted by the exceptional item. The PAT margin stood at 8.5% and the decline was on account of fall in operating margins

#ROCE

In FY25, the ratio witnessed decline, impacted by lower PBIT. In FY24, the ROCE observed a decline. The fall was on the back of decrease in PBIT.

#ROE

In FY25, ROE contracted as the PAT was impacted. On 17th September 2024, the company completed buyback of 16.7 lakhs shares for a price of ₹1,200 each, aggregating to ~₹200 cr. Pursuant to the buyback of equity shares, the equity share capital of the company stands decreased from 13,86,14,020 equity shares to 13,69,47,354 equity shares. On 29th October 2024, ESOP allotment of 2,620 shares was approved. Consequently, the paid-up equity share capital of the company stands increased from 13,69,47,354 equity shares to 13,69,49,974 equity shares. In FY24, the ROE decreased on account of fall in net profit.

#COMPANY #POTENTIAL

• Total LPG connections released under Pradhan Mantri Ujjwala Yojana (PMUY) has been on a rising trend for the rural areas. This rise in LPG connections is envisaged to aid in growth of cookers and cookware. • The household appliances market in India demonstrates significant potential for growth. With a projected revenue of $74.49 billion in 2023, the market is set to witness a compound annual growth rate (CAGR) of 5.65% over the period from 2023 to 2028. • The improvement in the real-estate construction industry is aiding demand for new homes which as and when occupied can improve the demand for kitchen and home appliances. • Discretionary spending on products remained a major concern for FY24. Although inflation softened towards the end of the year, this was not reflected in consumer sentiment, as pressures on consumer durables, including kitchen and home appliances, persisted. The shift back to office work reduced the intensity of home improvement activities significantly. However, value-added innovative products continued to perform well during the year. • Exports from India remained weak with very negligible growth in kitchen & kitchen appliances segment, from the low base of last year. This was due to the headwinds caused by global recession and unprecedented inflation in the developed markets driven by extended and new geo-political issues. However, India continued to remain high on minds of the global brands as alternate source of supply. Once the global economy improves, India is expected to reap the benefits on exports.

#COMPANY #OUTLOOK

• The company has entered into a binding agreement with GramyaHaat Rural Tech Pvt Ltd (GramyaHaat) in which it will be subscribing to Compulsorily Convertible Debentures which, as and when the conversion takes place, and this is likely to result in equity of more than 5% in GramyaHaat. GramyaHaat is a start-up company for exploring rural market through physical stores as well as through village level entrepreneurs. TTK Prestige will not have controlling stake in GramyaHaat. The total commitment is of the order of ₹15 cr of compulsorily convertible debentures. This investment will enable TTK Prestige Limited to access rural markets directly in specific geographies. • On 18th February 2025, the board approved a ₹500 cr investment over three years, beginning in Q4 FY25. Of this, ₹200 cr will be directed toward operational improvements, including innovation, manufacturing, market strategy, logistics, and service, while over the next 8 quarters shall remain impacted due to initial one-time investments. ₹300 cr is earmarked for capital expenditure. The initiative aims to strengthen the company's core businesses—pressure cookers, cookware, domestic kitchen appliances (electric and non-electric), and targeted exports. External expertise will be utilized as needed. While designed for growth and cost optimization, the plan may cause a temporary impact on operating EBITDA margins • The company is moving aggressively towards the digitization of finance related transactions between distributors & the company and enabling sales force on ground level to able to serve the orders. • The total count of Prestige Xclusive stores shall reach ~1,000 over the next few years. These will mostly be skewed to the top 500600 towns. • It plans to launch ~118 new SKUs in Q1 FY26.

TTK Prestige Limited 450-510
Expected level 650
Support 390

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Vishal Mega Mart Company Details Report

Vishal Mega Mart (VMM) is one of India’s largest offline-first value retailers, catering to a population of ~1b across the middle- and lowincome segmentsVishal Mega Mart .  VMM is a unique Indian retailer with: 1) a strong presence in tier 2+ cities (696 stores in 458 cities); 2) well-diversified exposure to key consumption baskets—Apparel (44%), General Merchandise (GM) & Fast-Moving Consumer Goods (FMCG; both ~28%); 3) a strong and affordable private brands portfolio (73% revenue share); and 4) one of the lowest cost structures in the industry.  We believe VMM’s uniqueness provides it with a strong moat against intense competition from both offline and online value retailers.  Expect VMM to clock a revenue/EBITDA CAGR of 19%/20%, driven by: 1) ~13% CAGR in store additions, 2) consistent double-digit SSSG, and 3) modest operating leverage benefits.  Given VMM’s debt-free balance sheet and robust cost controls, we expect ~24% PAT CAGR and cumulative pre-IND-AS OCF/FCF generation of ~INR32b/INR23b over FY25-28.  Initiate coverage on VMM with a BUY rating and a TP of INR165, premised on DCF-implied ~45x Sep’27E pre-INDAS 116 EV/EBITDA (implying ~31x Sep’27E reported EBITDA and ~69x Sep’27E P/E). 09 Page # 42 Initiate coverage with a BUY rating and a TP of INR165 10 Page # 44 Shift from unorganized to organized retail a multi-decadal growth story 11 Page # 51 Company overview 12 Page # 53 Key risks and concerns 13 Page # 55 Management background 14 Page # 56 ESG initiatives 15 Page # 57 B

Vmm is One-of-a-kind retailer catering to the ~INR70t opportunity  VMM is one of India’s largest offline-first value retailers, catering to a population of ~1b across the middle- and low-income segments. It serves a substantial market valued at ~INR70t, which is likely to reach ~INR100t+ by CY28.  It has a strong footprint of 696 stores across 458 cities spanning 30 states and UT, with ~72% of its stores located in tier 2 cities and beyond.  VMM is a unique retailer with well-diversified exposure across key consumption baskets—Apparel (44%) and GM & FMCG (both ~28%), that provides an opportunity to increase its share of customers’ wallets.  VMM has a strong and affordable portfolio of its private brands, which contributes ~73% of its revenue. Its private-labels in FMCG are sourced from reputed vendors such as Indo Nissin, Bikanerwala, and CCL Products and are priced at a significant discount to branded competitors.  The company has one of the leanest cost structures among Indian retailers, with a cost of retailing (CoR; including rentals) of ~INR1,800/sq ft (at least 20% lower than its nearest competitor). This enables VMM to offer the most competitive opening price points across several categories.