Can TTK Prestige Catch Up With Hawkins?

TTK Prestige Ltd. has lagged its smaller peer Hawkins Cookers Ltd. even as rising consumption is expected to boost demand for home appliances.

Shares of TTK Prestige returned 8.2 percent gains in the last one year compared with a 27.5 percent jump in Hawkins Cookers. Over the last month, TTK Prestige rose 11 percent compared with a 22.1 increase in its peer’s stock.

The appliance maker trades at 30 times its current earnings, according to Bloomberg data. That’s a 21 percent discount to Hawkins Cookers’ 36.5 times.

TTK Prestige is expected to benefit from improving rural consumption and government spending ahead of elections, market share gains from Goods and Services Tax rollout and newer revenue streams, CLSA said. The recent increase in the rollout target for the government’s Ujjwala Yojana scheme to provide cooking gas connections to 80 million poor households from 50 million earlier will also aid growth, according to the brokerage. A strong balance sheet, CLSA said, should help TTK explore buyout opportunities.