#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.

A play on rising aspirations in Tier 2 cities and beyond Unique retailer with a diversified category mix, affordable own brands play

VMM is among the largest offline-first value retailers in India, catering to a population of ~1b in the middle- and low-income segments. It services an INR70t Indian aspirational retail market, which is expected to reach INR100t+ by CY28.  Strong store footprint with long runway for growth – VMM has a strong footprint of 696 stores across 458 cities spanning 30 states and Union Territories, with ~72% stores in tier 2 cities and beyond. The company operates in a big-box retail format with an average store size of ~17.5k sqft.  Well-diversified category mix – VMM boasts a well-diversified category mix with over 25% revenue contribution from three major categories—Apparel, FMCG, and GM, which provides a large TAM and an opportunity to increase its share of customers’ wallets. Comparatively, other value-focused retailers primarily target either apparel (Zudio, V2 Retail, Style Baazar, and V-Mart) or grocery (DMart).  Strong and affordable own brands portfolio: VMM has a strong and affordable portfolio of own brands, which contributes ~73% of its revenue. Its private-label in FMCG are sourced from reputed vendors such as Indo Nissin, Bikanerwala, CCL Products etc. and are priced at a significant discount to branded plays.  Store payback in less than two years: VMM’s efficient working capital management, superior cost controls, and disciplined asset-light approach have enabled strong store economics, with ~15% pre-INDAS EBITDA margin at the store level, over 50% RoCE, and a payback period of less than two years.  Lean cost structure: VMM has one of the leanest cost structures among Indian retailers, with a CoR (including rentals) of ~INR1,800/sq ft (at least 20% lower than its nearest competitor). This enables the company to offer the most competitive opening price points across several categories.

Long runway for growth in the INR70t aspirational retail industry

 The tier 2+ towns account for ~74% of India’s retail spends (~INR56t), which remains largely dominated by unorganized retail (~90% share).  However, rising brand awareness, store expansion by organized retailers, and greater focus on better-quality products have led to a marked shift toward organized, one-stop shopping destinations, even in semi-urban and rural India.  VMM is a play on rising consumption and aspirations in Tier 2 and beyond India. Its well-diversified category mix and the lowest opening price points enable it to serve ~1b middle- and low-income consumers, representing ~INR70t aspirational retail market (as of CY23).

Healthy store economics create room for accelerated store expansions

VMM’s retail footprint spans 696 stores over 12m sq ft across 458 cities. It operates a big-box retail format, with an average store size of ~17.5k sqft.  During FY22-24, VMM added ~55 net stores annually. However, the pace of store additions has accelerated, with ~85 net stores added in FY25.  The company’s efficient working capital management, superior cost controls, and disciplined asset-light approach have enabled strong store economics with ~15% pre-IND-AS EBITDA margin at the store level, over 50% RoCE, and a payback period of less than two years.  Management has indicated that VMM could potentially add 100 stores annually over the next ~15 years across 50 tier 1 cities and 1,250 tier 2 cities with populations exceeding 50k.  Given the long runway for growth, strong store economics, and entry into newer territories, we believe the pace of store additions will likely remain elevated over FY26-28, as VMM expands its presence in states such as Tamil Nadu, Gujarat, and Maharashtra.  Overall, we build in ~13% CAGR in store additions for VMM over FY25-28, taking the total store count to 1,000 by FY28.

Well-diversified portfolio enhances VMM’s TAM and share of wallet

 VMM boasts a well-diversified category mix with over 25% revenue contribution from three major categories—Apparel, FMCG, and GM.  Comparatively, other value-focused retailers mainly target either apparel (Zudio, V2Retail, Style Baazar, and V-Mart) or grocery (DMart).  VMM’s diversified category mix makes it a one-stop destination for the entire family, expanding its total addressable market (TAM) and driving higher wallet share among consumers.  The GM and FMCG sections are typically located on the upper floors of VMM stores. Although these categories have lower gross margins compared to Apparel, they serve as a footfall driver for VMM.

SWOT ANALYSIS

Financial performance

Key risks and concerns

 Dependence on third-party vendors for manufacturing of own brands (73% revenue share)  Rising competition from other offline and online value retailers  Inflationary risks and inability to pass on price hikes  Sales concentration in select states  Follow-on stake sales from promoters (private equity-backed) and a lack of clarity on long-term ownership

Multi-category, own-brand portfolio acts as a strong moat for VMM

 VMM has successfully established a diverse and expanding portfolio of 26 own brands across key consumption baskets, with revenue contribution from these brands steadily rising to 73% by FY25.  In FY25, 19 of VMM’s own brands surpassed INR1b in sales, with six brands exceeding INR5b, demonstrating strong brand acceptance. VMM’s own brands typically offer the lowest opening price points, which makes them attractive for value-conscious consumers.  VMM operates a 100% private label portfolio across men’s, women’s, and kids’ fashion, covering a wide range of categories such as denim, ethnic wear, innerwear, and sportswear.  The company has significantly expanded its own brand offerings in GM under the ‘Tandem’ brand for home appliances, introducing products such as air fryers, garment steamers, sound bars, and kitchen tools.  VMM’s private labels account for ~35% of its FMCG revenue and hold ~45% share in categories where they are present. Moreover, the volume share is significantly higher, given the 20-50% price discount vs. leading brands.