Crisil Research maintains 4/5 grade on Time Technoplast: Research House: CRISIL Research Fair value: Rs 47 Current market price: Rs 29 Fundamental Grade: 4/5 (indicating “superior fundamentals” relative to all listed securities) Valuation Grade: 5/5 CRISIL Research maintains the fundamental grade of 4/5 on Time Technoplast, a manufacturer of industrial packaging (62 per cent of FY13 revenues) and other polymer-based products with a presence in 11 countries.In the domestic packaging business, Time was unable to pass on the recent rupee depreciation-led increase in polymer prices despite its market leadership as the demand in the domestic market is sluggish.Margin is expected to remain under pressure in the near term. In the overseas packaging business, Bahrain, Taiwan, Thailand and UAE are expected to continue to drive growth in the near term.The geographies entered in the last one year (China, Egypt, Indonesia, Malaysia, South Korea and Vietnam) are expected to start contributing to revenues from FY14 onwards aided by Time’s strategic vendor status with various global chemical companies.Revenues are expected to grow at 18 per cent CAGR over FY13-15 to Rs 246 crore and PAT is expected to grow at 8 per cent CAGR over FY13-15 to Rs 12 crore. RoE is expected to remain muted at ~12% in FY15 due to decline in profitability. The discounted cash flow method is used to value Time at Rs 47 per share, revised from Rs 54 earlier.
Posted on: Thu, 19 Sep 2013 09:12:25 +0000
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