'Buy' Time Technoplast Shares Maintains Motilal Oswal On Robust Outlook

Considering its strong growth prospects, improving return ratios, and attractive valuation (~17x FY27E P/E), Motilal Oswal reiterates Buy on Time Technoplast with an unchanged target price of Rs 578, based on 22x FY27E P/E (close to sector average)..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.During FY21-25, Time Technoplast Ltd. recorded a CAGR of 16%/19%/39% in revenue/Ebitda/PAT, with a 14.4% Ebitda margin (up 150bp). We now estimate a CAGR of 15%/16%/23% over FY25-28, with ~15% Ebitda margin. Our robust outlook is backed by moderate but stable growth in Established Products (12% revenue CAGR, ~13% Ebitda margin), alongside strong anticipated performance in value-added-product (20% revenue CAGR, 18%+ Ebitda margin). Despite annual capex of ~Rs 1.7 billion, we expect Time Technoplast's pre-tax return on capital employed/return on invested capital to expand from 18.2% each in FY25 (FY24: 16%-17) to ~23%/26% in FY28 on: healthy operating results, better efficiency (sales/gross-block to rise from 1.6x in FY25 to 2.1x in FY28E), andtightening of working capital cycle (down by 15 days over FY25-28). .It expects to use an estimated ~Rs 4 billion annual operating free cash flow to pare debt and turn net cash in FY27, from net debt of ~Rs 6 billion in FY24 (FY25: Rs 4.7 billion). Considering its strong growth prospects, improving return ratios, and attractive valuation (~17x FY27E P/E), we reiterate Buy on Time Technoplast with an unchanged target price of Rs 578, based on 22x FY27E P/E (close to sector average)..Click on the attachment to read the full report: .'Buy' Axis Bank Maintains ICICI Securities On Attractive Valuations .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Time Technoplast Shares Maintains Motilal Oswal On Robust Outlook

Stocks to Buy: Considering its strong growth prospects, improving return ratios, and attractive valuation, Motilal Oswal reiterates Buy on Time Technoplast

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