CLSA has retained its Hold recommendation on TTK Prestige, while trimming its target price to ₹620 per share following a weak Q4 performance. The company reported a 4% YoY revenue growth, but suffered a 449 basis points decline in EBITDA margin, missing CLSA’s expectations.
The brokerage attributed the margin erosion to ongoing operational investments, which are part of TTK Prestige’s ₹500 crore strategic investment plan over the next three years. This plan includes both operational and capital expenditures aimed at boosting long-term growth and market share.
Given that the benefits of this investment cycle are likely to be back-ended, CLSA has cut its FY26 and FY27 EBITDA estimates by 21% and 18%, respectively.
Disclaimer: The views and target prices mentioned in this article are as stated by the respective brokerage firms. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
