The kitchen appliance major's quarterly net profit declined 33 percent year-on-year, revenues fell 15 percent and operating margins too were under pressure.
He said a relaxation in the cap on cooking gas cylinders will be marginally negative for the company as it negatively impacts sales of the company's products.
On the positive side, Jagannathan said that the company's market share has increased across the board. But the company is not thinking of raising prices because of the increase in market share, Jagannathan said in an interview to CNBC-TV18.
Sales of induction cook tops fell sharply, and the company is not looking to cut down advertising and marketing spends despite cost pressures, Jagannathan said.
Brokerage house Standard Chartered Securities downgraded its rating on the stock to underperform with a price target of Rs 2920 after the third quarter earnings, saying there were no signs of recovery near term.
"Apart from the weak demand environment, challenges in induction products and rising competition in other electrical appliances are likely to hurt near-term performance," said the brokerage in a note to its clients.
Brokerage house Jefferies retained its underperform rating on the stock with a price target of Rs 2991, and cut revenue estimates by 5-7 percent for FY14-16.
"The southern regions have been under pressure for a while now, and muted demand conditions continue to impact sales in these key markets (T.N., A.P.). In the near term, demand for induction cooktops remains uncertain as it comes under the twin influence of better power availability in the south following connection to the national grid (positive) and easing of the cap on subsidized LPG to households (negative)," said the Jefferies note.
TTK Prestige stock price
On January 20, 2014, at 14:14 hrs TTK Prestige was quoting at Rs 3419.00, down Rs 62.6, or 1.8 percent. The 52-week high of the share was Rs 3899.00 and the 52-week low was Rs 2870.00.
The company's trailing 12-month (TTM) EPS was at Rs 97.59 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 35.03. The latest book value of the company is Rs 339.96 per share. At current value, the price-to-book value of the company is 10.06.
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