Motilal Oswal has initiated a ‘Buy‘ call on Time Technoplast with a target price of Rs 280, implying an upside of about 69% from the current market price of Rs 166, according to its report.
The brokerage’s detailed note points to stable business operations across geographies, improving margins led by rising polymer prices, and expansion in value-added products as key earnings drivers. It also notes that a recent correction in the stock has made valuations more appealing, even as earnings visibility remains strong over the next three years
Motilal Oswal on Time Technoplast
Motilal Oswal says Time Technoplast’s operations have remained steady even as global tensions continue to disrupt supply chains in parts of the world. The company derives a large share of its revenue from business-to-business industrial packaging, which has continued to deliver moderate growth with consistency.
“Time Technoplast’s business operations remain broadly stable despite ongoing conflicts in parts of the Middle East,” the brokerage said in its report.
The firm notes that the company’s strategy of sourcing raw materials, manufacturing, and selling finished products locally across multiple countries has helped limit disruptions. With operations spread across India and 10 overseas markets, the company has built a structure that reduces dependence on any single geography. Overseas markets contribute around 65% of total revenue, a key detail highlighted in the report.
“TIME’s strategy of sourcing raw materials, manufacturing, and selling finished products locally across 11 countries helps mitigate major supply chain disruptions,” Motilal Oswal said.
The brokerage also points out that the company has explored alternative sourcing routes for key inputs such as glass fibre and other raw materials, ensuring continuity even during periods of volatility in global trade flows.
Motilal Oswal on pricing tailwinds and margins
A sharp rise in polymer prices over the past few weeks has emerged as a key positive for the company’s earnings outlook. Motilal Oswal estimates that prices have moved up by 30% to 40%, and the company has been able to pass on most of this increase to its customers.
“The company has successfully passed on most of the raw material cost inflation to customers,” the report said.
This pricing action, combined with the company’s practice of maintaining low cost inventory, is expected to support margin expansion in the near term. While higher prices could weigh slightly on volumes in the short run, the brokerage believes the overall impact on profitability will be positive.
“While higher prices may slightly impact volumes in the short term, they are expected to support value growth and margin expansion,” Motilal Oswal said.
The company typically carries around three months of raw material inventory, which allows it to benefit when prices rise after procurement.
Motilal Oswal on expansion plans and capacity build up
The brokerage has taken note of ongoing capital expenditure plans, which remain on track and are expected to support future growth. The company is commissioning a greenfield plant with capacity of 600 composite cylinders, alongside a recycling unit.
In addition, it is expanding its intermediate bulk container facility through a brownfield project that is expected to be completed by the fourth quarter of financial year 2026.
“Capex execution remains on track, including commissioning a greenfield plant with 600 CNG cascades capacity along with a recycling unit,” the report said.
Motilal Oswal believes these investments will strengthen the company’s position in higher value segments while also improving operating efficiencies over time.
Motilal Oswal on value added products driving growth
A key part of the company’s strategy is increasing the share of value added products, which typically carry higher margins compared to standard packaging solutions. The brokerage expects this segment to see strong growth over the next few years.
According to projections cited in the report, revenue from value added products is expected to grow at a compound annual growth rate of about 20% over financial year 2025 to financial year 2028, with EBITDA margin at 18.8%.
“The company’s focus on developing composite cylinders for various applications, along with a rising value added product mix, supports its robust outlook,” Motilal Oswal said.
The shift towards these products is likely to improve the overall margin profile of the business and support earnings growth that outpaces revenue expansion.
Motilal Oswal on financial trajectory
The brokerage expects steady growth across key financial metrics over the next three years. Revenue is projected to rise to around Rs 8,000 crore by FY28 from about Rs 6,080 crore in FY26.
Earnings before interest, taxes, depreciation, and amortisation is estimated at Rs 900 crore in FY26 and Rs 1,210 crore in FY28, while profit after tax is projected at Rs 470 crore and Rs 700 crore respectively.
Motilal Oswal Financial Services also expects return ratios to improve, with return on equity rising to about 16.2% and return on capital employed moving towards 22.8% by financial year 2028.
This growth is supported by a combination of better pricing, operating leverage, and an improving product mix.
Motilal Oswal on valuation comfort after correction
The brokerage points out that the stock has seen a correction of around 15% from its recent peak, which has brought valuations down to more reasonable levels. Based on its estimates, the stock is trading at around 12 times to 14 times forward earnings.
“Overall, the impact on financials is expected to be negligible. A 15% correction in TIME’s scrip from its recent peak makes it more attractive,” the report said.
Motilal Oswal has assigned a target price of Rs 280, based on a valuation multiple of 20 times estimated earnings for FY28. This suggests significant upside potential from current levels.
Motilal Oswal on business resilience amid global tensions
Even as geopolitical tensions persist in parts of the Middle East, the brokerage believes the company’s diversified presence and localised operations provide a buffer against disruptions.
“TIME operates its B2B industrial packaging business across India and 10 overseas markets, which constitute around 65% of total revenue,” the report said.
The company’s ability to adapt sourcing strategies and maintain supply continuity has helped sustain operations without major setbacks, the report added.
Conclusion
Motilal Oswal builds its case on a mix of steady demand, pricing power, and a gradual move towards higher margin products. Expansion projects and a wider global footprint add to the earnings visibility over the medium term. With the stock trading at a discount to its historical valuation band after a recent decline, the brokerage sees room for re rating alongside earnings growth and maintains its ‘Buy’ recommendation.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to ‘Buy’ or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.