Rating (July 23, 2021) updates from ICRA- Link
Key Observations:
- FD program enhanced to 2X (~50Cr.)
- Vulnerability of the company’s profitability to volatility in raw material (Aluminium and stainless steel) prices and intense competition, relatively concentrated product portfolio and limited market size (Per May25,2021 Conf call (Link) of TTK, Pressure Cooker and Cookware Market is 2200+Cr. and 1400+Cr. respectively)
- Key rating monitorable: Company’s ability to diversify its products into new categories to reduce its concentration on a single product. In FY2021, pressure cookers contributed around 75% to the total sales, cookware about 21%
*Cookware now increasingly manufactured in-house, are still mainly traded. Distribution network, supported by ~6,500 dealers (Was noted as more than 5000 in FY20 report)
Disc: As above.