TTK Prestige Share Price Surges 15% for Second Straight Session Amid LPG Shortage Crisis: Should Investors Consider a Buy?

TTK Prestige Shares Surge Amid LPG Shortage Crisis

Market Update: TTK Prestige shares have seen a consecutive increase for the second session on March 12, driven by the ongoing LPG shortage crisis in India.

Key Drivers: The recent changes in demand caused by LPG shortages in the commercial sector, including hotels and paying guest accommodations, have led to increased sales of induction cooktops. TTK Prestige shares have witnessed a significant surge in demand, with induction cookers accounting for roughly 10-12% of their revenue, seeing daily sales rise from around 40-45 units to almost 120-130 units.

Industry Impact: The cost of India's most commonly used cooking gas was increased by 7% to ₹913 ($9.9) for the 14.2 kilograms cylinder on March 7. Commercial users like restaurants and hotels saw another price hike for a second time in March. This strong demand trend has also been reflected in TTK Prestige's shares performance, with the company's shares climbing nearly 29.77% within the last three days.

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Sector Performance: The broader consumer durables sector saw an increase of about 2% during the same timeframe, while Stove Kraft saw an increase of up to 12% but subsequently fell by over 4% after the rise. Market analysts indicate that persistent issues with LPG supply could lead to consumers switching to induction or electric cooking devices, benefiting companies like TTK Prestige, Stove Kraft, and Gandhimathi Appliances.

Company Performance: TTK Prestige derives about 35% of its income from pressure cookers and approximately 17-18% each from cookware and gas stoves, while induction cooktops contribute nearly 10-12%. The company reported revenues of ₹2,894 crore for the fiscal year 2025 and has set a target to achieve ₹5,000 crore by fiscal year 2027, driven by the growing demand for kitchen appliances due to rising LPG prices.