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Time Technoplast Ltd
Results in line; outlook positive
Fundamental Grade 4/5 (Superior fundamentals)
Valuation Grade 5/5 (CMP has strong upside)
Industry Containers & Packaging
Fair Value Rs 71
CMP Rs 54
Time Technoplast’s (Time’s) Q3FY11 results were in line with CRISIL Equities’
expectations, with revenues up 31% y-o-y and stable margins. We remain
positive on the company’s prospects, given strong growth in demand for
industrial packaging and Time’s leadership position in this segment. Its
expansion into Thailand, Taiwan and China is also expected to boost further
growth. Therefore, we maintain our earnings estimates and the fundamental
grade of ‘4/5’.
Q3FY11 result analysis
• Revenues grew ~31% y-o-y backed by robust volume growth across all
segments - industrial packaging, infrastructure, automotive and lifestyle
products.
• EBITDA margin remained stable at 19.6% against 19.2% in Q2FY11 and
19.4% in Q3FY10.
• PAT grew 28% to Rs 280 mn driven by revenues. EPS stood at Rs 1.3 for
the quarter against Rs 1.0 in Q3FY10.
• 9MFY11 revenues grew 27% to Rs 8,958 mn. PAT grew 22% to Rs 818
mn, with an EPS of Rs 3.9.
Trial runs commence in China; composite cylinder plant on schedule
• Time has commenced trial runs of its greenfield project in Tianjin (China)
and plans to start commercial production by March 2011.
• The composite cylinder plant in Talasari, Maharashtra is also on schedule
and is expected to be commissioned by May 2011.
Valuations: Current market price has strong upside
We continue to value Time using the discounted cash flow method and
maintain our fair value of Rs 71 per share. The fair value implies multiples of
10.0x FY12E and 8.4x FY13E earnings. Given the current market price of Rs
54, we revise the valuation grade from ‘4/5’ to ‘5/5’.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Time Technoplast Ltd
Results in line; outlook positive
Fundamental Grade 4/5 (Superior fundamentals)
Valuation Grade 5/5 (CMP has strong upside)
Industry Containers & Packaging
Fair Value Rs 71
CMP Rs 54
Time Technoplast’s (Time’s) Q3FY11 results were in line with CRISIL Equities’
expectations, with revenues up 31% y-o-y and stable margins. We remain
positive on the company’s prospects, given strong growth in demand for
industrial packaging and Time’s leadership position in this segment. Its
expansion into Thailand, Taiwan and China is also expected to boost further
growth. Therefore, we maintain our earnings estimates and the fundamental
grade of ‘4/5’.
Q3FY11 result analysis
• Revenues grew ~31% y-o-y backed by robust volume growth across all
segments - industrial packaging, infrastructure, automotive and lifestyle
products.
• EBITDA margin remained stable at 19.6% against 19.2% in Q2FY11 and
19.4% in Q3FY10.
• PAT grew 28% to Rs 280 mn driven by revenues. EPS stood at Rs 1.3 for
the quarter against Rs 1.0 in Q3FY10.
• 9MFY11 revenues grew 27% to Rs 8,958 mn. PAT grew 22% to Rs 818
mn, with an EPS of Rs 3.9.
Trial runs commence in China; composite cylinder plant on schedule
• Time has commenced trial runs of its greenfield project in Tianjin (China)
and plans to start commercial production by March 2011.
• The composite cylinder plant in Talasari, Maharashtra is also on schedule
and is expected to be commissioned by May 2011.
Valuations: Current market price has strong upside
We continue to value Time using the discounted cash flow method and
maintain our fair value of Rs 71 per share. The fair value implies multiples of
10.0x FY12E and 8.4x FY13E earnings. Given the current market price of Rs
54, we revise the valuation grade from ‘4/5’ to ‘5/5’.
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