Time Technoplast is a leading manufacturer of polymer based packaging & composite products with 34 production facilities in 11 countries.
Revenue growth led by composite products segment, savings in other expenses limits the EBITDA margin fall.
Time Technoplast’s share price has grown by ~2.3x over the past one year (from ~₹ 35 in August 2020 to ~₹ 78 level in February 2021).
We roll over valuation on FY24E. We value the stock at 5x EV/EBITDA on FY24E EBITDA and revise our target price to ₹ 115/share.
We like Supreme Industries in our coverage universe.
|(Rs# Crore)||FY19||FY20||FY21||FY22||5 Year CAGR(FY17-FY22)||FY23E||FY24E||2 Year CAGR (FY22-FY24E)|
|EBITDA Margin (%)||14.7||13.9||12.9||13.9||-||14.0||14.2||-|
|Price /Book Value (x)||1.4||1.3||1.2||1.1||-||1.1||1.0||-|
Q4FY22 Earnings Conference Call highlights
|Q4FY22||Q4FY21||YoY (%)||Q3FY22||QoQ (%)||Comments|
|Revenue||1,039.0||951.2||9.2||942.0||10.3||Revenue growth of ~9% YoY supported by 7% volume growth|
|Raw Material Exp||740.7||667.5||11.0||663.4||11.7||The gross margin down by 112 bps YoY mainly due to higher raw material costs|
|EBITDA Margin (%)||13.3||13.6||-22 bps||14.4||-107 bps||Saving in other expenses and employee costs restricted the EBITDA margin fall at 22 bps YoY|
|PAT||56.8||53.8||5.7||54.9||3.6||PAT came in higher by ~6% YoY, tracking topline growth in Q4|
|Polymer products||727.0||687.6||5.7||645.0||12.7||Plastic divsision revenues growth was partiall offset by lower revenues from the Pipe business (down by ~15% YoY), which restricted overall segment revenue growth at 5.7% in Q4|
|Composite products||311.9||263.6||18.3||297.0||5.0||New order inflows in the Type-IV composite cylinders drive overall segment revenue growth at ~18% YoY|
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