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PhillipCapital bumps up target price on Thakral following positive FY2025 results

Samantha Chiew
Samantha Chiew • 3 min read
PhillipCapital bumps up target price on Thakral following positive FY2025 results
PhillipCapital expects Thakral's project in Gurugram to be a significant contributor over the longer term. Photo: The Edge Singapore
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PhillipCapital is keeping its “buy” call on Thakral, with a higher target price of $2.56 from $2.12 previously. This new target price includes a 50% conglomerate discount and reflects current market values of the GemLife and The Beauty Tech Group (TBTG) listed stakes.

To recap, Thakral released its FY2025 ended Dec 31 2025 results on Feb 26, posting earnings of $170.9 million, a five-fold jump from earnings of $28.8 million last year. This came on the back of a 42% y-o-y increase in total revenue (lifestyle segment and investment segment) to $411.3 million, with both segments showing meaningful growth.

The lifestyle segment gained 29% y-o-y to $352.1 million, led by consistent and strong demand for the group's premium lifestyle products across Greater China and South Asia. The group's lifestyle segment includes business in the spaces of beauty, drones and coffee.

The investment segment gained 275% y-o-y to $59.2 million, mainly from the post-IPO valuation gain recorded on the GemLife shares.

The group has declared a second interim dividend of 3.5 cents per share. This brings the total dividend for FY2025 to 6.5 cents, representing 20% of earnings and translating to a dividend yield of 4.1%.

See more: Thakral posts five-fold jump in FY2025 earnings to $170.9 mil

See also: PhillipCapital's Chew raises target price for TeleChoice to 27.5 cents on growth prospects of mobile devices logistics

The results had exceeded analyst Darren Chan’s expectations, reaching 146% of FY2025 forecast.

The way Chan sees it, the lifestyle businesses will continue to scale, with a minimum 25% growth expected in FY2026, and the Nespresso India business to turn profitable in FY2027.

“We updated our SOTP to reflect the current market values of the GemLife and TBTG listed stakes and raised our valuation for the lifestyle business to 12x FY2026 PE (from 8x) on stronger growth prospects,” says Chan.

See also: RHB's Yeo keeps HRnetGroup at 'buy' with in-line FY2025, trims target price to 83 cents with larger share base

Meanwhile, he sees that the Gurugram real estate investment has significant potential to drive NAV upside in the coming years.

The group has entered into agreements to acquire an additional 81.64% stake in a 21-acre mixed-use healthcare-led development site in Gurugram for $93.9 million, increasing its equity stake to 95.28%, subject to shareholders’ approval at an upcoming EGM. T

The acquisition will be funded through cash and the issuance of new shares. Its existing 13.64% stake recorded a fair value uplift of $9.2 million (+140%) in FY2025. The project will comprise a hospital, health and wellness centre, and residential components.

Currently, the group is in advanced discussions with a Tier-1 hospital operator to construct and operate the hospital, with the group entitled to a revenue share. It is also in discussions with residential development partners to design and construct the residential component, with the group entitled to a share of residential unit sales. The Health and Wellness Centre will be developed by the group.

“Overall, the project has the potential to become a significant contributor to Thakral over the longer term,” says Chan.

Shares in Thakral last traded at $1.80.

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