Time Technoplast is in focus after Motilal Oswal Financial Services retained its Buy rating on the stock and assigned a target price of ₹280, implying an upside of over 52% from the current market price of ₹184. The brokerage said the company had demonstrated resilience despite a challenging operating environment and identified multiple growth and margin-expansion levers that could support a re-rating.
“We reiterate our BUY rating on TIME with a TP of INR280 (55% upside), based on 20x FY28E EPS. Despite a QIP-led equity dilution, RoE/RoCE (pre-tax) are expected to expand to ~14%/19% in FY28,” Motilal Oswal said.
The brokerage highlighted that FY26 had been a challenging year, marked by tensions in West Asia, the prolonged Russia-Ukraine conflict and volatility in crude and polymer prices, freight costs and currency markets. Despite these pressures, Time Technoplast reported record revenue, EBITDA and profit after tax during the year.
“TIME’s predominantly B2B model, backed by a disciplined monthly pricing mechanism, allowed it to pass on input cost movements to customers with a lag of 20-25 days, thereby protecting margins even in an unpredictable external environment. This momentum continued in 1QFY27 and is expected to remain intact in the rest of FY27,” Motilal Oswal stated.
As per Motilal Oswal, the company’s performance remained strong, with revenue, EBITDA and PAT rising approximately 12%, 14% and 21%, respectively, in FY26. It added that the momentum continued into the first quarter of FY27 and was expected to remain intact through the rest of the year.
Stock Performance
Closing at ₹184 today, the stock is currently 19% away from its 52-week high of ₹227.10, hit in October last year. Meanwhile, it touched its 52-week low of ₹154 in March 2023.
It has fallen 2% in 1 month but added around 2% in 3 months and 15% in 6 months. However, it fell 13% in the last 1 year. Meanwhile, in the long term, the stock has given multibagger returns, soaring, 410% in 5 years.
Why is MOFSL bullish?
One of the key reasons behind the brokerage’s positive view is Time Technoplast’s medium-term volume-growth opportunity. The company has guided for 13-15% volume growth, while Motilal Oswal believes several additional growth levers could allow it to surpass this range.
Among the key developments is the proposed merger of Time Technoplast’s approximately 75% subsidiary, TPL Plastech, with the parent company. The board was scheduled to consider the merger on September 29, 2026. TPL Plastech operates in the same rigid packaging business and had reported FY26 revenue of ₹4.2 billion and PAT of ₹2.9 billion. The brokerage expects the merger to improve operational efficiency.
Moreover, the company has also completed a greenfield project at Bhilad, Gujarat, featuring a fully automated plant using robotics. The facility will manufacture products including conical polymer pails and injection-moulded products and has a revenue potential of around ₹1 billion.
Time Technoplast is also exploring opportunities in hydrogen cylinders and has received a small order from NTPC for a locomotive pilot project. The brokerage said continued orders in the composite business provided another growth avenue.
“TIME not only weathered this turbulence but also converted it into an opportunity to demonstrate the strength of its strong and sustainable business model. FY26 turned out to be the most successful year in company’s history,” Motilal Oswal said.
Another factor supporting the outlook is the company’s ability to pass on higher raw-material costs. Motilal Oswal expects revenue growth of more than 20% in FY27, following a 25% year-on-year increase in the first quarter. While EBITDA margins could appear lower during periods of inflation because the company operates on an absolute EBITDA-per-tonne basis, the brokerage said EBITDA growth exceeding volume growth should be viewed positively.
The company’s focus on plant automation and consolidation is also expected to aid efficiency. Further, interest-cost savings following debt repayment using QIP proceeds could support PAT growth.
Estimates
Motilal Oswal estimates Time Technoplast’s revenue, EBITDA and PAT to grow at a CAGR of 17%, 16% and 21%, respectively, between FY26 and FY28. Revenue is estimated to rise from ₹61.1 billion in FY26 to ₹72.7 billion in FY27 and ₹83 billion in FY28. EBITDA is projected to increase from ₹8.9 billion to ₹10.3 billion and ₹12 billion over the same period.
Adjusted PAT is estimated to increase from ₹4.7 billion in FY26 to ₹5.6 billion in FY27 and ₹6.9 billion in FY28. Adjusted EPS is projected to rise from ₹9.5 to ₹11.3 and ₹14 over the same period.
The brokerage expects return on equity to improve to around 14% and pre-tax return on capital employed to approximately 19% by FY28, supported by operating performance, efficiency gains and an improved working-capital cycle. It values the stock at 20 times FY28 estimated EPS.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
