Time Techno has target of Rs 150: Ashish Tater

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Time Techno has target of Rs 150: Ashish Tater

Time Technoplast has target of Rs 150 from two-and-a-half to three years’ perspective, says Ashish Tater of Fort Share Broking.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Ashish Tater See what other Experts & Brokerages are saying about Time Techno See messages about Time Techno Time Techno BSE | NSE 31/05/12 Are Mutual Funds betting on Time Techno?

Time Technoplast has target of Rs 150 from two-and-a-half to three years' perspective, says Ashish Tater of Fort Share Broking.

Tater told CNBC-TV18, "Time Technoplast is into automotive segment and plastic products. They are one of the largest manufacturers of drums and packaging used in transportation of chemicals. If I look into the company prospects into various businesses it has diversified in, I think the company has got mindboggling prospects going forward from two-three years perspective."

He further added, "They have some well reputed brands like Duro Turf, Meadows, Ecopet for pet sheets and also Regal for garden furniture. I have always been a fan of companies, which own respected brands. We feel that with wide distribution network that this particular company has, it can turnout to be a true multi-bagger. Right now the company is available on a marketcap of close to Rs 1,200 crore odd and this particular stock is range-bound between Rs 50 to Rs 60 odd levels and right now it has just been around Rs 60-61 levels."

"With the recent carnage into the market the stock tested Rs 42 for two-three days and it bounced back very sharply from those levels. If I take a call from the fundamental perspective of the stock, I feel this is a stock, which should have a portfolio attraction for institutional investors also."

"The company has a subsidiary NED Energy, which has acquires a stake into a Bangalore-based company, which adds to the diversified portfolio of the company. Going forward this particular company has also developed UPS batteries which will add to the bottomline. Apart from this what is interesting is its strategic alliance with world's number one company in plastic products and also its acquisition of the plastic products division of Solutia Inc."

"I feel that with these expertises the company can manage 20-25% growth going forward and the PE would definitely be trading into 10-15 depending upon the market scenario. Right now the stock on consolidated expected EPS of Rs 5.8 is trading on a lower band PE of 10 times. It can be rerated once market sentiment improves."

"Another catch into the stock is its recent acquisition of Kompozit Praha. It is one of the three manufacturers in the world who manufacture composite cylinders. The company has setup a plant, which will be operational in next quarter itself for India. This particular market is a virgin market for India and has got tremendous potential going forward. The company's growth can be justified from all these angles."

"On a marketcap of just Rs 1,100 crore with these kinds of brands under its portfolio and a company management, which has been performing year-on-year, I think the stock would be rerated. Its earning potential will help the stock to take a target of Rs 150 from two-and-a-half to three years' perspective. But we would suggest that the stock should be entered around Rs 54-55-mark because it gives a comfort zone in terms of trading also."

"We have been suggesting to all our clients that do partially trade into these kinds of stocks because of market getting sticky in the broad range of 5,200 to 5,600 and we have been maintaining a broad consolidation range for the markets from 4,700 to 5,600 technically. But any surprise can happen because we feel that the price-to-book value of midcap companies and smallcap companies have come to attractive levels and there are certain stocks which are available at a PE of just 3-6.5 times going forward from two-three years perspective with tremendous growth potential. We feel that the market might surprise on a technical breakout for another 100-150 points but it would be broadly range bound."