The time has come to pick up safe scrips like "Time Technoplast"
Time Technologies Limited is an established leading manufacture of polymer based products catering to diverse industry segments like industrial packaging, lifestyle, infrastructure, automotive components and healthcare. Industrial Packaging constitutes 60 per cent of its revenue base and Time has 75 per cent market share in this segment. The company is likely to benefit immensely from the ever increasing demand for industrial packaging with a healthy growth in end user industries such as chemicals, speciality chemicals, FMCG and the increasing trend to replace metals with plastics. Moreover, Times entry into Asian countries like China, Taiwan and Thailand is a plus since these countries have low penetration of polymers.The company also has a presence in Czech Republic, Poland, Egypt, Poland, Romania, UAE, Bahrain, Indonesia, Vietnam and South Korea.
Time Technoplast Limited has expanded its business from a small SSI unit in 1992 to over 22 production facilities at 10 strategic locations in India.Since its inception, TTL has set itself apart from its competitors by focusing on Research and Development, futuristic product design and superior customer care service. The company manufactures a diversified range of products as shown below and as would be evident, company does not depend on any particular customer as such for generating revenues:
- Industrial Packaging – drums, jerry cans, PET sheets etc
- Lifestyle Products – lawn mattings, moulded furniture
- Auto Components – Rain flaps, Fuel Tanks, Air Ducts etc
- Healthcare Products – Auto break syringe, auto collect blood sampler
- Infrastructure Related Products – HDPE pies, road barriers, prefabs and shelters
Time’s 5 year CARG has been growing at 18.22 per cent whereas 5 year bottom line CARG stood at 23.16 per cent. Revenues which were Rs.304 crores in FY06 shot up to Rs.702 crores in FY10. PAT which was Rs.24 crores in FY06 shot up to Rs.68 crores in FY10. The company has posted good quarterly results. Total income was Rs.227 crores in Q3FY11 as compared to Rs.160 crores in Q3FY10, an increase of 41.87 per cent. PAT was Rs.24 crores in Q3FY11 as compared to Rs.15 crores in Q3FY10, an increase of 60 per cent. While Net Profit margins are a tad above 9 per cent, ROCE stood at 14.97 per cent and ROE stood at 14.94 per cent in FY10 Debt Equity ratio of Time Technoplast is around 0.57 backed by an Interest Cover of 4.45.
Time Technoplast which has a Market Cap of Rs.1130 crores and is currently available at a PE of 14. The CMP is 54. Despite several stocks having fallen by 50-60 per cent from their 52 week high, this scrip has fallen by around 17 per from its 52 week peak. Roughly 79.75 per cent of company's shares are in strong hands - promotors own 62.09 and Institutions have 17.66 per cent stake in time.
Conclusion: Though time will tell whether Time Technoplast will continue to ramp up sales, profits and overall performance, yet in these current volatile times taking a call on Time Technoplast will not harm your portfolio and you are more likely to reap good rewards if you are willing to cling on to Time for 1-2 years.
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