Synopsis: Motilal Oswal remains bullish on a leading packaging and polymer company, citing strong earnings growth, expansion plans, value-added products, and efficiency initiatives that could drive significant upside.
Motilal Oswal has reiterated its positive view on the company, citing its consistent financial performance and long-term growth prospects. The brokerage highlighted the increasing share of value-added products, capacity expansion across key segments, automation-led operational efficiencies, and growing adoption of renewable energy as key drivers of future growth. It believes these factors, along with attractive valuations, position the company well for sustained earnings growth. Based on these strengths, Motilal Oswal has maintained its Buy rating on the stock and assigned a target price of ₹280, implying an upside potential of around 60%.
Strong Financial Performance Continues
Time Technoplast reported a healthy performance for FY26, reflecting steady demand across its product portfolio. Total income for FY26 rose 11.9% year-on-year to ₹6,114 crore, while EBITDA increased 14.1% to ₹901 crore. Profit after tax (PAT) grew 20.8% year-on-year to ₹469 crore, supported by better operating leverage and lower finance costs.
For the March quarter (Q4FY26), total income stood at ₹1,682 crore, up 14.3% year-on-year. EBITDA rose 14% to ₹246 crore, while PAT increased 20.4% to ₹132 crore. The company maintained EBITDA margins at around 14.6%, demonstrating stability despite a challenging operating environment.
Finance costs declined to ₹79.8 crore in FY26 from ₹91.5 crore in FY25, helping support profit growth. Earnings per share (EPS) improved to ₹9.99 compared to ₹8.55 in the previous year.
Brokerage Bets on Value-Added Products
According to Motilal Oswal, Time Technoplast’s focus on value-added products (VAP) remains a key growth driver. The brokerage noted that the company delivered a CAGR of 15%, 18%, and 35% in revenue, EBITDA, and PAT, respectively, between FY21 and FY26. Looking ahead, it expects revenue, EBITDA, and PAT to grow at a CAGR of 15%, 16%, and 21%, respectively, during FY26-FY28, largely led by the VAP segment. Management has also guided for overall revenue growth of more than 15%, with faster growth expected in composite products and polyethylene pipe businesses.
Expansion Plans to Support Future Growth
The company continues to invest in capacity expansion across multiple growth segments. It is increasing manufacturing capabilities in compressed natural gas (CNG) cylinders, recycling operations, and international facilities. At the same time, it is pursuing brownfield expansions and adding new manufacturing units in India and overseas to align with changing market demand.
Another area of focus is composite LPG cylinders. Building on the success of its 10 kg composite cylinder, the company is working toward launching a 14.2 kg variant. These cylinders are nearly 50% lighter than conventional alternatives and offer enhanced safety features, creating a significant long-term market opportunity.
Efficiency Initiatives Could Lift Margins
Motilal Oswal believes margins can improve further through manufacturing consolidation, automation-led cost savings, and higher usage of renewable energy. The company has identified non-core assets worth around ₹134 crore for disposal over the next 18-24 months. Management expects this move to improve EBITDA margins and return on capital employed (ROCE).
FY26 ROCE stood at 18.9%, slightly below the company’s 20% target. However, management is targeting annual improvement of 1.5-2% through automation, machinery upgrades, process reengineering, and working capital optimization.
The company is also accelerating its transition toward green energy. It plans to source 75% of its electricity requirements from solar power over the next two years. Existing power purchase agreements across multiple states are already generating annualized savings of around ₹11 crore, with additional benefits expected from FY27 onward.
Outlook
Motilal Oswal believes the combination of strong earnings growth, expanding value-added product offerings, capacity additions, automation initiatives, and improving capital efficiency provides a solid foundation for future growth. The brokerage also highlighted the stock’s attractive valuation of around 12.5 times FY28 estimated earnings, which it believes leaves room for a potential re-rating and supports its bullish outlook on the company.
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