Kotak Securities' report on Time Technoplast
"HDPE prices have fallen in response to the softening in crude prices. This would be a positive for Time as HDPE is the main raw material for the company. The company should see decent margin gains in the second half of the current fiscal. Improving GDP growth outlook, moderating capex and stable borrowings should drive earnings cagr of 26% between FY14-16. We reiterate BUY on the stock with a revised price target of Rs 65 (Rs 60 earlier)", says Kotak Securities research report.
The company is aiming for revenue of Rs 25 bn plus in FY15, which is a growth of ~ 15% over FY14.
EBITDA margins should be higher in the current fiscal in view of the soft HDPE prices.
We forecast earnings to grow at a CAGR of 26% between FY14-16.
The company has incurred a capex of Rs 470 mn in H1FY15 and plans to spend Rs 950-1000 mn in the current fiscal. Over the next three years, capex would be to the extent of Rs 2.5 bn, which is substantially lower than the amount incurred during FY10-13.
The gross borrowings stand at Rs 8.6 bn which is more or less at the same level as at the end of FY14.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
