TTK Prestige FY21 AR -- ed

Anand Rathi Share and Stock Brokers Limited (hereinafter “ARSSBL”) is a full-service brokerage and equities-research firm and the views expressed therein are solely of ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient. Disclosures and analyst certifications are present in the Appendix. Anand Rathi Research India Equities

India I EquitiesConsumer Durables

Company Update

Nirav Vasa Research Analyst

Surbhi Lodha Research Analyst

Rating: Buy Target Price: Rs.9,897 Share Price: Rs.8,529

Key data TTKPT IN / TTKL.BO

52-week high / low Rs.9286 / 4981Sensex / Nifty 52344 / 156833-m average volume $2.7mMarket cap Rs.119bn / $1611.2mShares outstanding 14m

Shareholding pattern (%) Mar’21 Dec’20 Sep’20

Promoters 70.4 70.4 70.4- of which, Pledged - - -Free float 29.6 29.6 29.6 - Foreign institutions 10.0 9.5 9.4 - Domestic institutions 12.5 11.7 11.8 - Public 7.1 8.4 8.4

Key financials (YE: Mar) FY19 FY20 FY21 FY22e FY23e

Sales (Rs m) 21,069 20,730 21,869 25,248 29,745

Net profit (Rs m) 1,924 1,846 2,429 2,859 3,711

EPS (Rs) 138.7 132.8 170.7 206.1 267.5

P/E (x) 52.3 60.4 52.6 41.4 31.9

EVEBITDA (x) 27.9 43.7 34.5 27.6 21.5

P/BV (x) 7.2 9.0 7.9 6.9 6.0

RoE (%) 16.5 15.0 14.9 16.7 18.9

RoCE (%) (post-tax) 15.2 13.3 15.0 15.6 17.8

RoICE (%) (post-tax) 19.2 19.8 23.0 25.5 29.9

Dividend yield (%) 0.4 0.2 0.6 0.7 0.9Source: Company

Relative price performance

Source: Bloomberg

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TTKPT Sensex

19 June 2021

TTK Prestige

Strengthens core in FY21; outlook remains robust, maintaining a Buy

On going through the FY21 annual report, we maintain our positive stance on TTK Prestige. The company has emerged stronger in FY21 and the growth momentum would continue in FY22 as is product range and geographic reach continues expanding pan-India, supported by SKU expansion. Growth in cleaning solutions can be high as the company intends this brand to be the first across all India in this category, on levering its marketing network and brand proposition. Exports are another growth lever, which can deliver.

Innovation continues unhindered despite FY21 being challenging: Innovation and convenience seem to be key differentiators for TTK and have supported growth in an extremely competitive market. The trend continued unhindered in FY21 as the company’s entire range of pressure cookers was upgraded to the Swatch platform. Also, TTK entered casseroles in FY21. It launched 127 SKUs in FY21 and plans to launch another 100 in FY22.

Exports on a spree / import dependence being reduced in FY21: TTK is also keen on ramping up exports as several global brands which depended on China are diversifying their supply chains. FY21 exports were Rs714m, up 70% y/y on the lower base. Effective Oct’20, TTK stopped imports from China, resulting in non-availability of some SKUs in Q2 FY21. However, it plugged supply-side constraints by increasing capacity and building a supply chain in India.

Valuation. In preparing this note, we have not altered our estimates. We maintain our Buy recommendation on the stock with an unchanged target price of Rs.9,897, (37x FY23e EPS of Rs.267.50). At the CMP of Rs.8,529, the stock trades at 41x/ 32x FY22e/FY23 EPS of Rs.206/267.50. Risks: Constrained demand for kitchen appliances, which could impact the company’s domestic business growth prospects. Unfavourable sentiment across the United Kingdom, which could hurt the demand prospects of its subsidiary, Horwood.

Change in Estimates TargetReco

19 June 2021 TTK Prestige – Strengthens core in FY21; outlook remains robust, maintaining a Buy

Anand Rathi Research 2

Quick Glance – Financials and Valuations

Fig 1 – Income statement (Rs m) Year-end: Mar FY19 FY20 FY21 FY22e FY23e

Net revenues (Rs m) 21,069 20,730 21,869 25,248 29,745 Growth (%) 12.6 -1.6 5.5 15.4 17.8 Direct costs 12,206 12,046 12,689 14,407 16,832 SG&A 5,943 6,053 5,908 6,780 7,783 EBITDA 2,920 2,631 3,273 4,061 5,131 EBITDA margins (%) 13.9 12.7 15.0 16.1 17.2 - Depreciation 265 366 400 457 498 Other income 252 247 287 325 459 Interest expenses 45 51 51 66 67 PBT 2,863 2,461 3,110 3,862 5,024 Effective tax rate (%) 32.8 21.3 24.8 26.0 26.1 + Associates / (Minorities) Net income 1,924 1,846 2,429 2,859 3,711Adjusted income 1,924 1,962 2,249 2,859 3,711WANS 12 14 14 14 14FDEPS (Rs / sh) 138.7 132.8 170.7 206.1 267.5 FDEPS growth (%) -27.0 -4.3 28.6 20.7 29.8 Gross margins (%) 42.1 41.9 42.0 42.9 43.4

Fig 3 – Cash-flow statement (Rs m) Year-end: Mar FY19 FY20 FY21 FY22e FY23e

PBT 2,863 2,344 3,229 3,862 5,024 + Non-cash items 91 303 349 198 107Oper. prof. before WC 2,954 2,648 3,578 4,061 5,131 - Incr. / (decr.) in WC -1,102 556 -29 -1,065 -1,133 Others incl. taxes -912 -672 -729 -1,004 -1,313 Operating cash-flow 940 2,531 2,820 1,993 2,685 - Capex (tang. + intang.) -572 -577 -282 -450 -550 Free cash-flow 368 1,954 2,538 1,543 2,135

Acquisitions - Div.(incl. buyback & taxes) -418 -501 -555 -832 -1,110 + Equity raised - - 0 - - + Debt raised -380 -346 -155 96 - - Fin investments 391 -1,413 -1,704 -1,341 -1,300 - Misc. (CFI + CFF) 134 50 103 240 392 Net cash-flow 95 (257) 227 (294) 117Source: Company

Fig 5 – Price movement

Source: Bloomberg

Fig 2 – Balance sheet (Rs m) Year-end: Mar FY19 FY20 FY21 FY22e FY23e

Share capital 116 139 139 139 139Net worth 11,663 13,063 15,050 17,077 19,678Debt 543 434 765 861 861Minority interest - 24 - - -DTL / (Assets) 443 329 349 330 330Capital employed 12,649 13,850 16,164 18,268 20,869Net tangible assets 3,708 4,444 4,405 4,515 4,566Net intangible assets 34 30 22 35 35Goodwill 1,278 1,251 1,299 1,299 1,299CWIP (tang. & intang.) 206 57 190 60 60Non-current assets 314 227 258 550 550Investments (strategic) 264 1 1 - -Investments (financial) 1,655 3,310 4,204 5,500 7,000Current assets (ex cash) 8,249 8,120 8,394 9,378 11,042Cash 811 576 1,612 1,363 1,280Current liabilities 3,870 4,165 4,220 4,431 4,962Working capital 4,380 3,955 4,174 4,947 6,079Capital deployed 12,649 13,850 16,164 18,268 20,869 Contingent liabilities 782 397 589 - -

Fig 4 – Ratio analysis Year-end: Mar FY19 FY20 FY21 FY22e FY23e

P/E (x) 52.3 60.4 52.6 41.4 31.9 EV / EBITDA (x) 27.9 43.7 34.5 27.6 21.5 EV / Sales (x) 3.9 5.5 5.2 4.4 3.7 P/B (x) 7.2 9.0 7.9 6.9 6.0RoE (%) 16.5 15.0 14.9 16.7 18.9RoCE (%) (post-tax) 15.2 13.3 15.0 15.6 17.8ROIC (%) (post-tax) 19.2 19.8 23.0 25.5 29.9 DPS (Rs / sh) 30.0 20.0 50.0 60.0 80.0 Dividend yield (%) 0.4 0.2 0.6 0.7 0.9 Dividend payout (%) - incl. DDT 26.1 15.1 28.6 29.1 29.9 Net debt / equity (x) -0.2 -0.3 -0.3 -0.3 -0.4 Receivables (days) 53 49 49 50 50 Inventory (days) 82 83 75 77 77 Payables (days) 35 35 38 36 36 CFO : PAT % 48.9 129.0 125.4 69.7 72.4Source: Company

Fig 6 – Revenue mix for FY21

Source: Company

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Cookware 15%

Kitchen appliances

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Presure cookers 28%

Others 4%

Horwood (UK based subsidiary)

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Key observations on the FY21 annual report How TTK navigated challenging times in FY21. The onset of Covid’

19-related lockdowns across India at the start of FY21, affected TTK’s Q1 FY21. As a result, sales could be booked only by end-May’21. The company drew up business contingency plans for all functions during the lockdown and bounced back from Aug’20 in production and sales.

The business contingency plans focussed on (a) digitising the sales process, (b) innovative marketing strategies and (c) careful optimisation of supplies to various channels as each channel turned operational. As a result, average monthly domestic sales peaked at Rs2bn during the nine months starting Q2 FY21, notwithstanding some limitations in the supply chain during Q2 and Q3 FY21.

The release of pent-up demand and the need to upgrade kitchens supported a recovery in domestic kitchen and home appliance since Jul’20. Till then, online was the mainstay; thereafter, general trade, modern trade, rural channels opened up one after the other during Q2 and Q3 FY21

Innovation continues unhindered despite FY21 being challenging: Innovation and convenience seems to be the key differentiators for TTK and have supported growth in an extremely competitive market. The trend continued unhindered in FY21 as it has upgraded its entire range of pressure cookers onto the Swatch platform, characterised by (a) unique lids with spillage control, (b) being gas- and induction-compatible, (c) pressure indicators and (d) controlled gasket-release systems.

In FY21 the company also started marketing casseroles. It launched 127 SKUs in FY21 and plans to launch another 100 in FY22.

As stated in its expansive vision “To delight home makers with innovation and To make products available to every home”. Based on this vision, TTK aims to double its revenues in the next five years, thereby targeting a 15% revenue CAGR.

Fig 7 – 100 SKUs are expected to be launched in FY22

Source: Company, Anand Rathi Research

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Range and reach expansion continued in FY21: The increasing number of SKUs is supported by a wider product range and a broader geographic reach, despite the embargo on movement in FY21. The number of is exclusive brand outlets rose to 620 at end-FY21 on adding 32 outlets. The rise in store count was the highest in FY21, compared to FY17-20. The number of service outlets also increased to 464, 23 more y/y.

Increasing exports/import dependence lowered in FY21: Apart from expanding operations in its home market, TTK is also keen on ramping up exports, as several brands which depended on China are widening their supply chains. FY21 exports were Rs714m, up 70% y/y on the lower base.

Cookware and pressure cookers were the two chief categories driving exports and are expected to remain the mainstay ahead. Effective Oct’20, TTK stopped imports from China, the impact being seen in non-availability of some SKUs in Q2 FY21. However, it plugged supply-side constraints through increasing capacity and building a supply chain in India.

Emerging as an all-India brand in cleaning solutions: After becoming well-established across the entire gamut of kitchen operations, from pre-cooking operations (chopping, blending, grinding) to food preparation, TTK entered cleaning equipment in FY18. It aspires to become the first cleaning-

Fig 8 – Prestige Xclusive outlets increasing since FY17


Fig 9 – Service outlets being ramped up consistently


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Fig 10 – Exports increased 70% y/y in FY21


Fig 11 – Cookware, pressure cookers drove FY21 exports


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Presure cookers53%

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solutions brand across India courtesy its all-India marketing network and strong brand recall in kitchen appliances. In FY21 it booked Rs501n revenue, up 47% y/y. Its products are well accepted in the market, and it was unable to meet demand in FY21 because of supply-side constraints.

Fig 12 – TTK’s operations across the entire gamut of kitchen operations Pre cooking operations Food preparation Kitchen supplements Kitchen hardware

Chopping Pressure cooking Heaters Chimneys

Blending Cooking Toasters Storage ware

Grinding Sauteing, frying Beverage makers

Processing Baking

Products

Mixer-grinders Pressure cookers Kettles Complete kitchen solutions

Food processors Non-stick cookware Pop-ups

Choppers LPG gas stoves Toasters

Blenders Induction cooktops Sandwich toasters

Juicers LPG hobs Coffee makers

Wet grinders Hob tops Tea makers

Knives OTGs

Rice cookers

Barbecues

Source: Company

Fig 13 – Cleaning-solutions revenue has been increasing since FY19


Robust business model, winning many accolades in FY21: The result of its robust business model was seen in it winning many accolades in FY21.

Key among these are:

Super-brand 2020

Silicon India Magazine – Brand of the Year

Global Marketing Excellence Award

CIO 100 Honoree Award 2020 by IDG

CXO Tech Excellence Award 2020 by CXO TV

Covid-19 Super-Hero CIO Award by Enterprise

Cloud Achievers’ Award at India Cloud Summit 2020 by Dynamic CIO

Elite CIO Runner-up Award 2020 by Elite CEO Council.

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Financial analysis5% y/y revenue growth in FY21 supported by major product categories: Revenue from pressure cookers, TTK’s largest product category, was flat at Rs6bn. Cookware clocked 14% y/y growth to Rs3.3bn, while cleaning solutions grew 47% y/y on a lower base. Its UK subsidiary, Horwood, which was struggling amid BRexit, reported 13% y/y growth.

Fig 14 – 5% revenue growth booked in FY21


Fig 15 – Revenue booked in each product category (Rs m) FY17 FY18 FY19 FY20 FY21 Y/Y (%)

Pressure cookers 5,955 5,836 6,457 5,962 6,010 1

Kitchen appliances 5,173 3,999 4,532 4,466 4,720 6

Cookware 2,803 2,812 3,016 2,917 3,320 14

Gas stoves 2,308 2,573 2,717 2,615 2,686 3

Mixer-grinders - 1,666 2,250 2,331 2,206 -5

Cleaning solutions - - - 340 501 47

Others 592 579 709 738 890 21

Horwood (UK subsidiary) 1,415 1,250 1,389 1,362 1,539 13

Total 17,451 18,714 21,069 20,730 21,869 5Source: Company, Anand Rathi Research

Steady gross margin, firm control of other manufacturing expenses support 225bp EBITDA margin expansion y/y: The FY21 EBITDA margin rose 225bps y/y even as the gross margin held steady at 42% with firm control over other manufacturing expenses. Major expenses such as advertising and publicity dipped 18% y/y while sales promotion expenses were steady at Rs207m. The sharp increase in provision for bad debts (at Rs217m) was the key stand-out among other expenses.

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Fig 16 – Gross margin was steady at 42%


Fig 17 – Major expense heads booked in other mfg expenses (Rs m) FY17 FY18 FY19 FY20 FY21

Advertising & publicity 931 1,093 1,223 1,209 989

Carriage outwards 707 821 887 927 894

Sales promotion 341 382 251 196 207

Bad-debt provision 11 46 21 57 217

Power & fuel 177 177 213 204 192

Others 1,334 1,314 1,488 1,570 1,497

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Carriage outwards 4.1 4.4 4.2 4.5 4.1

Sales promotion 2.0 2.0 1.2 0.9 0.9

Bad-debt provision 0.1 0.2 0.1 0.3 1.0

Power & fuel 1.0 0.9 1.0 1.0 0.9

Others 7.6 7.0 7.1 7.6 6.8


NWC contracts to 86 days at end-FY21; Rs2.5bn FCF in FY21: TTK has kept NWC in control (90-100 days). At end-FY21, NWC was 86 days (97 a year ago) on account of (a) eight fewer inventory days y/y in FY21 and (b) 38 more payable days at end-FY21. Supported by the higher EBITDA margin and firm control over NWC, cash flow from operations rose to Rs2.8bn in FY21. After incurring Rs282m capex in FY21, free cash-flow was Rs2.5 bn.

Fig 18 – NWC has remained in control in FY21 FY17 FY18 FY19 FY20 FY21

Inventory days 79 85 82 83 75

Receivables days 45 50 53 49 49

Payables days 33 46 35 35 38

NWC days 92 89 99 97 86


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Fig 19 – Rs2.5bn FCF generated in FY21 (Rs m) FY17 FY18 FY19 FY20 FY21

CFO 941 1,268 940 2,531 2,820

Less: Capex -262 -121 -572 -577 -282

Free cash-flow 679 1,148 368 1,954 2,538


Rs5.8bn cash balance: 39% of net worth at end-FY21: Outstanding cash balance at end-FY21 was Rs5.8bn, 39% of its outstanding net worth.

Fig 20 – Cash balance has been rising consistently since FY17 (Rs m) FY17 FY18 FY19 FY20 FY21

Net worth 8,536 10,197 11,663 13,063 15,050

Cash and bank balances 1,401 3,025 2,466 3,885 5,815

% of net worth 16 30 21 30 39Source: Company, Anand Rathi Research



ValuationWe have not changed our estimates at the time of releasing this note. We maintain our Buy rating on the stock, with a target price of Rs.9897 (37x our FY23e EPS of Rs.267.50). At the CMP of Rs.8,529, the stock trades at 41x/ 32x our FY22e/FY23e EPS of Rs.206/267.50.

Over FY21-FY23, we expect 17%/24% CAGRs in revenue/PAT, resulting in the RoE expanding from 15% to 19%. The RoCE (post-tax) could expand from 15% to 18%. Since the balance sheet is loaded with cash, the RoCE may appear supressed. The RoIC (post-tax) could increase from 23% to 30%.

Key monitorables would be

Keener competition, especially from regional and local peers, mainly on pricing in categories such as cleaning appliances and kitchenware, where the company intends to become an all-India brand.

Capex outlook for FY22 and FY23. TTK now expects to incur Rs500m capex in FY22 and FY23. This could increase based on rising demand and exports.

Expansion into luxury kitchen appliances under Prestige Lifestyle.

Fig 21 – RoCE and RoIC have been expanding since FY19


Risks

Contracting demand for kitchen appliances, which could hurt its the growth prospects of its domestic business.

Unfavourable sentiment across the United Kingdom, which could hurt the demand prospects of its subsidiary, Horwood.

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Fig 22 – Trading at more than 40x FY22e earnings


Fig 23 – Mean PE: 37x


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Appendix Analyst Certification The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter “SEBI”) and the analysts’ compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have no bearing whatsoever on any recommendation that they have given in the Research Report. Important Disclosures on subject companies Rating and Target Price History (as of 19 June 2021)

Date Rating TP

(Rs) Share

Price (Rs)1 5-Mar-12 Buy 3,647 2,8372 9-May-12 Buy 3,637 3,1023 15-Oct-12 Sell 3,116 3,3144 17-Jul-13 Sell 3,255 3,4825 23-Oct-13 Sell 3,060 3,3306 20-Jan-14 Sell 2,746 3,4827 19-May-14 Sell 3,107 3,2628 14-Oct-14 Sell 3,285 4,0309 22-Jan-15 Sell 3,344 3,585

10 29-May-15 Sell 3,040 3,91411 27-Jul-15 Sell 3,060 3,98812 16-Oct-15 Sell 3,496 4,20013 21-Apr-16 Hold 4,941 4,62314 2-Feb-17 Hold 5,425 5,79115 31-May-17 Sell 5,954 6,48916 28-Oct-17 Hold 6,860 6,50217 25-May-18 Hold 6,203 5,96018 26-Jul-18 Hold 6,226 5,95019 25-Oct-18 Hold 6,646 6,11120 29-Jan-19 Hold 8,093 7,67121 29-May-19 Hold 6,760 7,29122 7-Aug-19 Buy 6,760 5,55023 12-Aug-19 Hold 6,760 6,02624 8-Nov-19 Hold 6,670 6,08425 3-Feb-20 Buy 7,002 5,89226 11-Aug-20 Buy 6,300 5,46227 1-Sep-20 Hold 6,300 5,88528 10-Feb-21 Buy 8,181 6,95229 26-May-21 Buy 9,897 8,211

Anand Rathi Ratings Definitions

Analysts’ ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described in the Ratings Table below:

Ratings Guide (12 months) Buy Hold Sell Large Caps (>US$1bn) >15% 5-15% <5% Mid/Small Caps (<US$1bn) >25% 5-25% <5% Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014

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TTK Prestige

ARSSBL and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned herein or (b) be engaged in any other transaction involving such investments/ securities of company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) these and other activities of ARSSBL and its associates or employees may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall ARSSBL and its associates or employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind.

Details of Associates of ARSSBL and Brief History of Disciplinary action by regulatory authorities & its associates are available on our website i.e. www.rathionline.com

Disclaimers in respect of jurisdiction: This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject ARSSBL to any registration or licensing requirement within such jurisdiction(s). No action has been or will be taken by ARSSBL in any jurisdiction (other than India), where any action for such purpose(s) is required. Accordingly, this Report shall not be possessed, circulated and/or distributed in any such country or jurisdiction unless such action is in compliance with all applicable laws and regulations of such country or jurisdiction. ARSSBL requires such recipient to inform himself about and to observe any restrictions at his own expense, without any liability to ARSSBL. Any dispute arising out of this Report shall be subject to the exclusive jurisdiction of the Courts in India.

Statements on ownership and material conflicts of interest, compensation - ARSSBL and Associates

Answers to the Best of the knowledge and belief of ARSSBL/ its Associates/ Research Analyst who is preparing this report

Research analyst or research entity or his associate or his relative has any financial interest in the subject company and the nature of such financial interest. No

ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report?

No

ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company No

ARSSBL/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report? No

ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months No

ARSSBL/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve months

No

ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months

No

ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months

No

ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the subject company or third party in connection with the research report

No

ARSSBL/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company. No

Other Disclosures pertaining to distribution of research in the United States of America

This research report is a product of ARSSBL, which is the employer of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.) and are not associated persons of any U.S. regulated broker-dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account.

This report is intended for distribution by ARSSBL only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted onward to any U.S. person, which is not the Major Institutional Investor.

In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business withMajor Institutional Investors, ARSSBL has entered into an agreement with a U.S. registered broker-dealer, Cabrera Capital Markets. ("Cabrera"). Transactions in securities discussed in this research report should be effected through Cabrera or another U.S. registered broker dealer.

1. ARSSBL or its Affiliates may or may not have been beneficial owners of the securities mentioned in this report.

2. ARSSBL or its affiliates may have or not managed or co-managed a public offering of the securities mentioned in the report in the past 12 months.

3. ARSSBL or its affiliates may have or not received compensation for investment banking services from the issuer of these securities in the past 12 months and do not expect to receive compensation for investment banking services from the issuer of these securities within the next three months.

4. However, one or more of ARSSBL or its Affiliates may, from time to time, have a long or short position in any of the securities mentioned herein and may buy or sell those securities or options thereon, either on their own account or on behalf of their clients.

5. As of the publication of this report, ARSSBL does not make a market in the subject securities.

6. ARSSBL or its Affiliates may or may not, to the extent permitted by law, act upon or use the above material or the conclusions stated above, or the research or analysis onwhich they are based before the material is published to recipients and from time to time, provide investment banking, investment management or other services for or solicit to seek to obtain investment banking, or other securities business from, any entity referred to in this report.

© 2021. This report is strictly confidential and is being furnished to you solely for your information. All material presented in this report, unless specifically indicated otherwise, is under copyright to ARSSBL. None of the material, its content, or any copy of such material or content, may be altered in any way, transmitted, copied or reproduced (in whole or in part) or redistributed in any form to any other party, without the prior express written permission of ARSSBL. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of ARSSBL or its affiliates, unless specifically mentioned otherwise.

Additional information on recommended securities/instruments is available on request.

ARSSBL registered address: Express Zone, A Wing, 9th Floor, Western Express Highway, Diagonally Opposite Oberoi Mall, Malad (E), Mumbai – 400097. Tel No: +91 22 6281 7000 | Fax No: +91 22 4001 3770 | CIN: U67120MH1991PLC064106.

TTK Prestige FY21 AR -- ed

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