Buy and Hold Time tecnoplast for feb to July (Expected Return 30% to 50% or More)

Time Technoplast Ltd:-

 

The Market Capitalization of the stock at present 938Cr Rs, F.V. 1Rs, Industry : Plastics Products. At present stock running near 52 weeks low 43.10Rs. Yesterday was closed at 44.85Rs.

FINANCIAL PERFORMANCE FOR THE YEAR:

Consolidated net revenues for the year stood at Rs. 10,113.5 million. This is 28.1%higher than net revenues of Rs. 7,897.5 million in FY2009. This significant increase isprimarily driven by strong performance in all the major segments of Time Tech businesses.

EBITDA amounted to Rs. 1,966.4 million, a growth of 25.9% over the Rs. 1,561.8 millionreported last year while the Net profit grew by 31.7% to Rs.908.8 million from Rs.690.1million last year.

For the year, the company has paid enhanced dividend @ 40 % as against the previousyear of 35 %.

Profit & Loss Statement for the year ended 31st March, 2010.

OUT LOOK :-

In the changed economic conditions, the economic centre of gravity is shifting from the developed markets to the developing markets This is a huge opportunity for the Asian economies.

In India , the demand for rigid polymer packaging-based products is growing at a rapid pace with increase in consumption further aided by shift to polymer products from metal products used earlier. With a wide spread marketing and distribution network, state-of-the-art technologically advanced manufacturing facilities, TimeTech is well poised to sustain and grow its market leadership in the Industrial Packaging space.

After assuming the market leadership in India, the company ventured into the other territories in Asia & Middle East & has strengthened its market positions in Middle East & Asian Region. Company's focus going forward will be to grow by mix of Green field projects and also by acquiring businesses wherever it sees the feasible opportunity. An expansion in the product portfolio with a focus on induction of new generation products, composite LPG cylinders and simultaneously expanding the Company'spresence in several Asian markets will drive the organic growth. On the inorganic frontthe Company will continue to explore strategic opportunities in the high growth vertical.

Given the inherent strengths the Company combined with huge market opportunities TimeTech is optimistic about delivering superior performance going forward.

Particulars (Rs. in million)	FY'2010	FY'2009	Shift %
Net sales	10,113.53	7,897.47	28.06
EBITDA	1,966.40	1,561.77	25.91
Profit Before Tax	1,278.60	1,031.24	23.99
Profit After Tax	982.61	761.89	28.97
Minority Interest	73.86	71.83	2.83
Net Profit	908.75	690.06	31.69

And as per the last P/L statement for the year ended 31st March, 2010 and outlook of the company, Company will launch Plastic LPG cylinders Asap, which helps to grow and apart from this news and company will realese expected positive results.  

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Rohit Saxena
Phone No: 09891265905
Mail Id: rohit_9sep@indiatimes.com