Result Update: Time Technoplast Ltd (TTL) - BUY - TP Rs.178 - Kotak

- Time Technoplast reported healthy operating level performance for Q4FY17. However profit estimates were missed due to higher tax provisions. Revenue growth was strong at 25% yoy aided by 24% y-o-y growth in volumes. EBITDA margins expanded on a y-o-y basis Stock. The company expects its debt to remain at the current levels as it would be meeting its future capex needs through internal accruals. During FY17, the company commissioned couple of manufacturing units which will aid revenue growth in FY18. We value the stock at 14x FY19 earnings, arriving at a target price of Rs 178 (Rs 130 earlier, based on 13x FY18 earnings) on the stock. In view of the adequate upside, we upgrade rating to BUY.

- Key Risks: Delay in capacity expansion & commercialization of new products. Currency fluctuation & pricing of key raw material i.e. HDPE

Shares of TIME TECHNOPLAST LTD. was last trading in BSE at Rs.164.1 as compared to the previous close of Rs. 152.25. The total number of shares traded during the day was 521703 in over 6576 trades.

The stock hit an intraday high of Rs. 170.5 and intraday low of 152. The net turnover during the day was Rs. 85591884.

Source : Equity Bulls

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