Result Update: Time Technoplast Ltd - ACCUMULATE - TP Rs.210 - Kotak

- Time Technoplast reported healthy operating level performance for Q1FY18. However profit estimates were missed due to lower than expected revenue coupled with higher tax provisions. 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 three manufacturing units which will aid revenue growth in FY18.

- We continue to maintain our positive stance on the company in view of healthy earnings growth coupled with improving return ratios. We value the stock at 18x FY19 earnings (14x FY19 earnings earlier) and arrive at a price target of Rs 200 (Rs 178 earlier). We are according higher target multiple in view of 1) improving trajectory in ROCE 2) Improvement in share of "value added products" 3) huge potential for composite cylinders.

- The stock has been a stellar performer in the past twelve months and has given significant returns. Post the rally in the stock, the upside is moderate, and hence, we now move rating from "BUY" earlier to "ACCUMULATE".

- 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.188.2 as compared to the previous close of Rs. 191.35. The total number of shares traded during the day was 77532 in over 992 trades.

The stock hit an intraday high of Rs. 190.7 and intraday low of 183.2. The net turnover during the day was Rs. 14510725.

Source : Equity Bulls

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