[stock_ticker symbols=”TIMETECHNO” show=”name” static=”0″ nolink=”” duplicate=”1″ class=””]

29-June-2016 – Time Technoplast Limited (Time Tech) is a multinational conglomerate with operations in Asia, Europe and Africa. It is a leading manufacturer of polymer products. Its entire operation is branched into two segments i.e. Polymer Products and Composite Products. In the financial year 2015-16, the revenue from polymer products division is 1769 crore, where as the composite division recorded a revenue of 702 crore.

Time Tech made its major revenue from Industrial Packaging division. In the last financial year, the revenue share of industrial packaging is approximately 74%. Other than Industrial Packaging, the company has other products e.g. Automotive components, Lifestyle products, Healthcare products, Material Handling, Infrastructure product and composite cylinders.

The composite cylinder division is a niche area. It has not been accepted properly in India. The company is the only known manufacturer of composite cylinder in India. TimeTech’s Composite Cylinders ‘LiteSafe’ are totally explosion proof, translucent (to see the level of gas inside), much lighter in weight (40% of Steel Cylinder weight), and are corrosion and rust proof. These ‘LiteSafe’ Cylinders are successfully in operation in India for over 2 years with a leading LPG Distribution Company in private sector and also exported to over 17 countries worldwide. To meet the growing demand for Composite Cylinders, Company is expanding its capacity from 300,000 Cylinders to 700,000 Cylinders p.a. in India.

Hon’ble Minister of Petroleum had recently announced that public sector Oil Marketing Companies’ (OMCs) shall soon be rolling out Composite Cylinders for distribution of LPG in India. Pursuant to govt. policy, a leading Oil Marketing Company has placed trial order for ‘LiteSafe’ Composite Cylinders on Time Technoplast .

In the pre-fabricated segment, the company is also expected to show better growth as lots of government initiative has been taken.

In the last financial year, the company has recorded a flat revenue of 2668 crore against 2668 crore in the last financial year. Operating profit declined from 251 crore to 249 crore. However, as per management commentary, the financial year 2015-16 was a year of consolidation and the result is not comparable with that of last financial year because of sale of business in Poland and Romania. It also acquired 50% equity in joint venture company in Egypt. As a result, in spite of flat operating profit, the EPS has grown by 26% to 6.58 after extra-ordinary item.

The management is quite confident on the near term business perspective. It has set out a goal to double the revenue by 2020-21. Being industry leader in Industrial packaging, good growth prospect of composite cylinder and management outlook, we believe that the stock will hit a conservative target of 64 from the current level of Rs 49 (a growth of 30%) in the next 12 months.

NSE Code : TIMETECHNO

BSE Code : 532856

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