Thread by @vikramaditya243

Hi everyone. Its a happy Friday again, a full weekend before we put our heads down to work again for another five days. This weekend lets study a company of the Times group that is Time Technoplast Ltd. I hope you like this thread.

#TIMETECHNOPLAST
#TYPEIVCOMPOSITECYLINDERS

Before i start, I would like to say that I am a normal investor who has gained knowledge through the internet, please do not take the thread as an investment advice. Now repeat after me
" I will do my own research, borrowed conviction never succeeds"

Time Technoplast is categorised under small cap by SEBI and has a market cap of around 2k Cr. It is a leading manufacturer of tech based polymers and composite products.

Time Technoplast was globally the 1st one to manufacture polythelene drums, 1st to mfg tubular gel batteries, 1st to mfg IBCs, 1st to manufacture anti spray rainflaps

Its products line -
Pay a spl attention to value added products like carbon fibre reinforced wrapped Type -IV CNG, LPG (Oxygen & Hydrogen coming soon) composite cylinders. These cylinders are the first made In India comp cylinders approved for CNG, LPG usage by Peto & explosives

Safety org and Bureau Veritas under intl standards,these are the future products which are gaining immense popularity as replacement for age old, heavy and rustprone metal cylinders. Also do remember the crazy hike in metal commodities prices

Lets discuss in detail about their products
1. Composite Type IV cylinders

It is the only company in India for locally produced type -IV composite cylinders used for CNG cascades and on board application in automobiles.
It is world's 2nd largest producer of composite cylinders.

The composite production started in FY21 and because of mfg capacity and huge addressible mkts the company restricted its supply to city gas distributers and not to automobiles. Capex of 125 Cr planned this year to increase mfg capacity to include automotive sector

The revenue from composite cylinders was just 150Cr this year which would rise to 750 Cr in 3 years and 1000Cr in five years when the company is doing a total business of 3600Cr. Means huge upscale. These claims are backed by on ground progress and mkt potential. eg the company

Is already having orders of more than 400 Cr for this year. In May 2022 Indian Oil Corp signed a deal of 180Cr with them for CNG cylinders.
The govt also aims to increase the share of natural gas in the energy mix from current 6% to 20% by 2030, a significant step towards

Becoming a gas based economy to achieve the COP 21 climate change goals for 2030.
Natural gas consumption has increased consistently over the last 5 yrs
Cabinet's push for a green hydrogen based energy grid, wherein India aims to become a net exporter of Green hydrogen.

India is the 3rd largest consumer of natural gas in Asia.

CITY GAS DISTRIBUTION (CGD)

The 9th and 10th bidding round for development of CNG network and pipelines is over and it is expected by 2030 India will have an operational CGD infra of 407 districts.

Covering 70% of population.
Aggressive commissioning of bio- CNG plants( 5000 already envisaged to be commissioned in next 5 years) and easy funding to these plants definitely shows the scenario changing to gas based energy sources (whether bio gas, cng or green hydrogen)

2. Industrial packaging
- In industrial packaging Time has 60% mkt share in India.
- 20 mfg locations
-strong presence in 11 countries
-14 recognised brands
-900 big customers globally (revenue share not monopolised by few)

-4th largest industrial packaging company worldwide behind giants like Schutz, Germany and Greif
- wide spectrum of usage as in chemicals, foods& beverage, petrochemicals, industrial coating, agriculture, pharma & construction chemicals.
STRONG INTERNATIONAL MARKET

IBCs
Times is the 3rd largest producer of IBCs globally. IBCs lead to 75% savings in storage and transportation costs and have addl advantages of strong resistance to chemicals vs metal drums also the increasing costs of metal commodities

Is largely in their favour. India's leading market in pharma and supply chemicals is +ve for Times

Between 2019-22 packaging industry is expected to grow at a CAGR of 7.5% globally (the company has huge global presence - 11countries and 3rd largest company in the world)

While Indian packaging industry is expected to grow at a CAGR of 26.7 percent. Its consumption rose from 4.3 kg to 8.6 kg in past decade and is expected to further rise with steeper curve.

The profit share from its other business verticals of batteries and pipe industry is less but the company claims to have developed new tech for Li ion battery which is showing promising results in the upcoming ev segments, and there is an order of Rs 100 Cr From Tesla power USA

Talking about the numbers,
We can see the total income for the year has increased from 3008 Cr to 3652 Cr that is a 21% YoY increase, whereas cherry on the cake is the net profit numbers which have increased from 105.83 Cr to 192.20 Cr which is a whopping 81% YoY increase

This means that not only are the revenues growing but the margins are also growing insanely making company extremely profitable and a value for money. The company is regularly doing CAPEX but still the debt levels are negligible and cash reserves still growing. Debt:equity=0.4

A very healthy ratio. The company's business and margins are growing very rapidly. It saw a downside in the business due to COVID and the company has already surpassed its pre covid business revenues, when the company at pre covid times with not so promising future was avlb at

Rs 215 now with such value added products and excellent growing numbers it is avlb at 115 with a p/e of just 13!!

It looks a promising company all set in the runway to give multibagger returns

***** END OF THE THREAD*****
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Thank you for your patient reading 🙃🙂