Q3FY21 Result Update - Time Technoplast - ICICI Direct

Time Technoplast reported an improved QoQ recovery in Q3FY21 supported by improved demand from user industries. While the management expects pre-Covid level sales in Q4FY21 over Q4FY20, the FY21 revenue recovery is likely to be in the range of 75-80%. Going forward, the management anticipates a normalised FY22 with focus on increased revenue contribution from value added product (currently ~21% of topline) and execution of orders in the PE pipe segment (order book is ~Rs. 250 crore). On the balance sheet front, the company is looking at RoCE of ~20% in the next three years supported by improved plant utilisation and margin profile (due to rising contribution of value added product category).

Valuation & Outlook

We tweak our earnings estimate upward by ~11% and 4% for FY21 and FY23E, respectively. We believe improved product mix would help drive EBITDA margin going forward. Further, marginal debt reduction via positive CFO would keep overall D/E below 0.5x. We maintain HOLD on the stock with a revised TP of Rs. 58 (valuing at 4x EV/EBITDA FY22E, earlier TP Rs. 43).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_TimeTechno_Q3FY21.pdf

Shares of TIME TECHNOPLAST LTD. was last trading in BSE at Rs.55.4 as compared to the previous close of Rs. 52.6. The total number of shares traded during the day was 84919 in over 624 trades.

The stock hit an intraday high of Rs. 56.35 and intraday low of 53.2. The net turnover during the day was Rs. 4622835.

Source : Equity Bulls

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