Shares of Time Technoplast Ltd jumped 2.92% to ₹422.40 in early trade on Monday after Motilal Oswal Financial Services (MOFSL) initiated coverage on the company with a ‘Buy’ rating and a target price of ₹578, implying a 41% upside from current levels.
MOFSL’s report positions Time Technoplast as a global leader in polymer-based industrial packaging and composite cylinders, with world-leading market positions in large plastic drums, intermediate bulk containers (IBCs), and composite LPG/CNG cylinders. The company operates in 10 countries and holds a dominant 50–60% market share in India.
The brokerage notes that the company is at an inflection point driven by strong growth from value-added products (VAP), which currently contribute 27% of revenue and are growing at over 20% CAGR. Time Technoplast is targeting a 35% VAP mix by FY28, which could structurally uplift margins.
Financially, MOFSL estimates a 23% CAGR in profit after tax from FY25 to FY28, with return on capital employed expanding from 18% to 23% and the company turning net cash positive by FY27. It highlights a strong compounding track record with PAT growing at 39% CAGR between FY21 and FY25.
As of today, the stock trades at ₹422.40 with a market cap of ₹95.88 billion, a P/E ratio of 24.70, and has traded in the ₹280.55 – ₹513.55 range over the past year.
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