Result Update: Time Technoplast Ltd - BUY - TP Rs.195 - Kotak

Time Technoplast reported healthy operating level performance for Q1FY19. Profits exceeded our estimates. The company shared positive outlook on future growth and reiterated its target to scale up the ROCE to 20% plus by FY21.

Key Highlights

- The company reported volume growth of 14% in Q1FY19
- The share of value added products has risen to 19% of the total sales in Q1FY19 as against 17% in the corresponding quarter of previous year.
- The company has envisaged capex of Rs 2.0 bn in FY19.

Valuation and Outlook

- At CMP, TTL is trading at P/E of 13.6x and 10.8x FY19E and FY20E earnings respectively, which is attractive as it is at a discount to midcap index valuation. In recent months, the TTL stock has been derated in line with general sell-off in the midcaps and smallcaps universe. However, the Q1FY19 results should put at rest concerns related to growth and profit margins. Reiterate BUY

Shares of TIME TECHNOPLAST LTD. was last trading in BSE at Rs.151 as compared to the previous close of Rs. 157.25. The total number of shares traded during the day was 43268 in over 778 trades.

The stock hit an intraday high of Rs. 165 and intraday low of 149.8. The net turnover during the day was Rs. 6610630.

Source : Equity Bulls

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