Fundamental Analysis

TTK HEALTHCARE LIMITED

Ticker : 507747
BUY: Rs 770
Target: Rs 870

TTK Healthcare is engaged in the business of pharmaceuticals, consumer products, medical devices, protective devices, and foods. It is a part of TT Krishnamachari Group. The standalone quarterly financials of the company revealed that its net sales and other operating income surged 29.24 per cent from Rs 159.67 crore in Q2FY21 to Rs 206.36 crore in Q2FY22. Its operating profit skyrocketed by 68.04 per cent from Rs 11.20 crore in Q2FY21 to Rs 18.82 crore in Q2FY22. The net profit declined by 58.43 per cent to Rs 12.81 crore in Q2FY22 as against Rs 30.81 crore recorded during Q2FY21. The company is debt-free and has been maintaining a healthy dividend payout of 27.22 per cent. It is currently ramping up the business volume by foraying into new geographies and expanding its existing product portfolio. A revival in demand is expected to result in improved performance in the upcoming quarters. Hence, we recommend BUY.