Time Technoplast posted healthy operating figures for the first quarter of FY27, despite ongoing geopolitical tensions in West Asia. Revenue rose 25% year‑on‑year, while volume grew 11% and realizations improved, driven by higher polymer prices. EBITDA margin fell slightly to 13.3%, a 115 basis‑point decline caused mainly by a lower gross margin.
In the Indian segment, volume increased 10% and revenue jumped 30% YoY. Established products saw volume up 10% and revenue up 25%, but the EBITDA margin slipped to 11.7%, down 150 basis points. Value‑added products grew 12% in volume and 25% in revenue, and kept a steady EBITDA margin of 17.9%.
The company used its INR1.55 billion cash flow in 1QFY27 to pay down debt by INR897 million and invest INR751 million in capital expenditures.
With a robust outlook and a valuation around 15 times FY28 earnings, the research team recommends a BUY rating and maintains a target price of INR280, which is 20 times FY28 earnings.
Investors should note that these are independent views and should seek professional advice before making decisions.