Analyst Meet Update - Time Technoplast - ICICI Direct

Time Technoplast, in its recently concluded analyst meet, laid out plans to achieve Rs. 5000 crore revenues by FY25 (implied CAGR of 14% in FY21-25). The growth is expected to be largely driven by value added products (~20% of revenue), which is likely to grow at ~16% CAGR in FY21-25. The established products segment (~80% of revenue) will likely grow ~13% in FY21-25E driven by improved demand of packaging products and recovery in PE pipe demand backed by government flagship schemes like 'Nal se Jal'. On the CNG cascade front, the products are under trial and the management sees incremental revenue opportunities of Rs. 2200 crore per annum. However, this revenue opportunity is not built in the company's future projections. The management aims to improve EBITDA margin from ~13% in FY21 to 15.5% by FY25 through improved sales mix towards value added product category (from 20% to 22% in FY25). The management has guided for improvement in RoCE to 20% by FY25E (~9% in FY21) led by various debt reduction initiatives such as improvement in cash conversion cycle and sale of none core assets. While the guidance seems to be slightly aggressive, we believe new opportunities on the CNG cascade front, improvement in EBITDA margin and initiatives to lighten the balance sheet are fundamental rationale to remain positive on the stock.

For details, click on the link below: Link to the report

Shares of TIME TECHNOPLAST LTD. was last trading in BSE at Rs.85.55 as compared to the previous close of Rs. 86.1. The total number of shares traded during the day was 76394 in over 1401 trades.

The stock hit an intraday high of Rs. 87.4 and intraday low of 83.35. The net turnover during the day was Rs. 6535893.

Source : Equity Bulls

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