Time Technoplast Ltd., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 1564.94 Crore) operating in Packaging sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 835.44 Crore, up 12.23 % from last quarter Total Income of Rs 744.41 Crore and down -9.56 % from last year same quarter Total Income of Rs 923.71 Crore. Company reported net profit after tax of Rs 39.83 Crore in latest quarter.
Investment Rationale
The brokerage initiates coverage highlighted the opportunity in CNG cascades and the concerns over quantum of pledged shares. The above developments have come faster than expected. They are yet to build-in numbers due to limited capacity of the recently launched product and would consider revenues once TTPL augments capacity for the same. The product is also RoCE-accretive as it is a VAP and has margins equivalent to LPG composite cylinders. The brokerage thus raises earnings multiple from 10x to 11x with a revised target price of Rs102 (earlier: Rs93), on FY22E earnings. Key risks to upside: capital allocation and sustained high levels of debt.
Promoter/FII Holdings
Promoters held 51.3 per cent stake in the company as of Dec 30, 2020, while FIIs held 15 per cent, DIIs 11.1 per cent and public and other 22.6 per cent.
