Time Technoplast Ltd
Investment Thesis
Over a 3-5 year horizon, Time Technoplast Ltd will achieve sustained revenue growth and margin expansion, driven by its strategic shift to value-added products and leverage of its dominant market position.
Conviction History
Assumptions
Time Technoplast's value-added product (VAP) revenue will grow at 15%+ annually, expanding blended EBITDA margins to over 15% by FY27E, supported by higher pricing power in composite cylinders and IBCs.
Effective management of polymer input costs will maintain COGS as a percentage of revenue below 85% through FY27E, supporting margin targets despite crude oil price volatility.
Consolidated revenue growth will be supported by volume increases across industrial packaging and infrastructure segments, reaching 10%+ annually through FY27E, driven by industrial production and 'Make in India' initiatives.
Debt/EBITDA ratio will decline to below 2.0x by FY26, as asset sales and improved operating cash flow are utilized for debt reduction.
Capital expenditure will remain focused on VAP capacity expansion and recycling initiatives, with CAPEX as a percentage of revenue not exceeding 7% annually through FY27E, avoiding past aggressive expansion issues.
No material adverse regulatory changes or product approval issues (e.g., PESO) will arise, allowing for continued market access for composite cylinders and other key products.
Recent Developments
Crude Oil (WTI) prices surged 16.6% over 30 days to $65.26/bbl, significantly increasing feedstock costs for polymer-based industrial packaging.
Time Technoplast secured its first trial order of ₹2.30 crore for Type IV Composite Hydrogen Storage Systems for the Indian Armed Forces.
[NSE] - Outcome of Board Meeting
Q3 FY26 revenue grew 12.7% YoY to ₹1,564 cr with EBITDA margins hitting 15.2%, driven by a 15% growth in Value-Added Products.
US-India trade deal reduced plastics sector tariffs from 50% to 18%, restoring competitiveness for Indian exports.
US-India trade deal reduced plastics sector tariffs from 50% to 18%, restoring competitiveness for Indian exports.
US-India trade deal reduced plastics sector tariffs from 50% to 18%, significantly lowering export costs for Indian manufacturers.
US-India trade negotiations resulted in a 32-percentage-point reduction in tariffs for the plastics sector, lowering cumulative duties from 50% to 18%. This restores the competitiveness of Indian plastic exports against regional rivals in the American market, directly impacting one-third of India's total exports to the US.