Buy Time Technoplast; target of Rs 60: Kotak Securities

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26 Aug, 2025 12:21

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Kotak Securities research report on Time Technoplast “For Q2FY15, the company reported consolidated net revenues of Rs 6.0 bn, up 13.7% YoY. Standalone revenues grew 11.6% yoy to Rs 3.3 bn, accounting for 55% of the consolidated revenues. The balance revenue would be contributed by the company's subsidiary NED Batteries and overseas manufacturing units. We expect the share of overseas revenues to increase due to rampup of new manufacturing facilities that have been commissioned across Asia and Middle East in FY12-13. The operating margin for Q2FY15 stood at 14.3%, an expansion of 20 bps YoY. Gross margins declined 150 bps yoy to 31.1%. Tax rate during the quarter has decreased to 22% vs 23.5% in Q2FY14. Overall capacity utilization is moderate at ~ 60% but its overseas facilities have a much lower capacity utilization of 50-55%. Thus, there is adequate upside to capacity utilization without further augmentation of capacity. The company believes that it can do a turnover of Rs 25-30 bn based on the current capacity.” “TTL has reported largely in-line profit numbers for Q2 FY15, driven mainly by healthy growth in revenues. In our view, the key to stock performance remains 1) moderation in capex and consequent reduction in borrowings 2) Ramp-up in overseas operations. Valuations are attractive at 6.7x FY16 earnings. We maintain BUY with a revised target price of Rs 60,” says Kotak Securities research report.

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