praveen
06-12-2008, 08:33 AM
By Devdas Mogili
Time Technoplast Ltd. (TTL), formerly known as Time Packaging, is a 19-year old Daman & Diu based company established in 1989. From its humble beginning as a packaging unit, later it made scorching progress and today its product portfolio consists of packaging products like drums/containers, pails, PET sheets, entrance mattings, turfs, garden furniture, automotive components, auto disabling medical disposables and warning nets. While focused on polymer products, TTL has built a consolidated technology platform that enables it to develop a wide range of innovative products.
The company entered the capital market with a public issue of 39,21,500 equity shares at an issue price of Rs.315 per share in 2007. The issue evoked a massive response and was oversubscribed 49.55 times. TTL has 21 manufacturing facilities spread across 7 locations like Daman, Silvassa, Pen and Mahad to serve the western region, Hosur to serve South India and at Baddi & Pantnagar to serve North India. It also has four overseas locations at Sharjah, Poland, Bahrain and Thailand. Mr. K. N. Venkatasubramanian is the chairman while Mr. Anil Jain is the managing director of the company.
The company is primarily engaged in the manufacture and sale of technology based polymer products catering to the growth sectors of Industrial and Consumer Packaging Solutions, Life Style Products, Auto Components, Healthcare Products and Construction & Infrastructure related products.
TTL is in the process of setting up manufacturing facilities in the Middle East, Europe and is also entering into a joint venture with the Mauser Group of Germany to acquire or set up related businesses in other Asian countries. In 2005, the company had set up a 100% subsidiary, Elan Incorporated FZE in Sharjah Airport Free Trade Zone, U.A.E., for manufacturing Packaging products and Life Style products (garden furniture). In 2006, it set up a 100% subsidiary, Novo Tech Sp Z O.O. in Kostryzn Slubice Special Economic Zone, Poland, for manufacturing Auto Components (anti-spray device) and Life Style Products (mattings and turfs). The company has also acquired 75% stake in TPL Plastech Ltd., formerly known as Tainwala Polycontainers Ltd.
TTL has also acquired 71.48% equity stake in Hyderabad based NED Energy Ltd., a closely held company engaged in manufacturing high technology Valve Regulated Lead Acid (VRLA) batteries. NED enjoys quality leadership for its batteries in the telecom sector under a well-established brand 'MaxLife'.
During the current year, NED has acquired Gulf Powerbeat WILL (GPW), which has state-of-the art production facility at South Alba Industrial Area, Manama, Bahrain for manufacture of high quality long life batteries.
Brands: TTL has built brands for its products viz. 'Time Mauser'for packaging products, 'Ecopet' for PET sheets, 'Meadowz' for Turf, 'DuroTurf', 'DuroSoft' & DuroWipe' for mattings, 'Regal' for garden furniture, '3S' for anti-spray devices (Automotive component), 'Genex' for Healthcare products and 'Netrix' for safety & warning nets. During FY08, it entered into the high growth sector of telecom batteries where its brand ' MaxLife' has already assumed quality leadership. All its brands are well recognized and accepted.
Marketing: TTL has a strong marketing & distribution network spread over 350 cities and towns across India.
Its multi-location operations allow it to leverage the competitive advantages of 'just-in-time' delivery to institutional customers with requisite logistic capabilities to feed its marketing & distribution networks efficiently and cost effectively.
Performance: For FY08, TTL posted revenues of Rs.777.36 cr. with net profit of Rs.87.06 cr., which is inclusive of an exceptional item of Rs.105.53 cr. and registered an EPS of Rs.36.44.
Latest Results: During Q2FY09, TTL notched up revenues of Rs.235.48 cr. with net profit of Rs.18.47 cr. The previous year’s net profit is inclusive of exceptional items of Rs.13.39 cr. The company posted a basic/diluted EPS of Rs.8.82 (FV: Rs.10). The annualized EPS works out to Rs.35.28 (FV: Rs.10).
Financials: The company has an equity base of Rs.20.92 cr. and the book value of its share on Rs.18.09. The company has a low debt:equity ratio of 0.52, RoCE of 17.19% and RoNW of 17.68%.
Share Profile: The company’s shares were split from Rs.10 to Re.1 during October 2008. Its shares are listed on the BSE and NSE under the B group. Its share price touched a 52-week high/low of Rs.114/27. At its current market price , it has a market capitalisation of Rs.597 cr.
Dividends: Post IPO, TTL paid is maiden dividend of 30% FY08.
Shareholding Pattern: The promoters hold 63.46% in the company while the balance 37.56% is held by non-corporate promoters, institutions, mutual funds and the Indian public. Among mutual funds ICICI Pru, Sundaram BNP Paribas, IDFC, DSP and JP Morgan have added the company’s share to their various schemes.
Prospects: TTL is among a elite group of worldwide companies to have developed the technologies for manufacture of mats, plastic fuel tanks, healthcare products.
The overall outlook for FY09 looks positive. Sectors like Speciality (value added) Chemicals, Infrastructure, Healthcare etc. are set to witness a surge in capex over the next 3-4 years. This would result in higher output in these sectors thereby generating significant demand for TTL’s products. Going forward, the company expects to maintain a healthy growth rate of above 30% in all product segments. Higher capacity utilisation leading to higher economies of scale and efficient centralised procurement of raw materials would enable TTL to improve its operating margins.
Some of the new projects under implementation include entering into high pressure pipes (HDPE). These are large diameter composite pipes that will be used for transporting water/effluents etc. under high pressure and find huge applications in upcoming SEZs, IT Parks and housing complexes etc. In addition, TTL is entering into manufacturing of Prefabs, which are used for setting up low cost mobile offices, housing, and school class rooms etc. Besides, the company is entering into manufacture of BT (Base Transmission) shelters that find wide application in telecom. All these projects shall come on stream from the end of FY09 or beginning of FY10.
Conclusion: TTL has created a consolidated technological platform encompassing the basic polymer technologies of blow moulding, injection moulding and extrusion. These technological capabilities differentiate the company from its competitors. Use of these unmatched technologies in zero defect business like industrial packaging in collaboration with world leaders like Mauser, Germany, has created huge entry barriers for its competitors enabling TTL to acquire a majority share of the market.
At its current market price , the share price is discounted less than 8 times against the industry average P/E of 10. Considering its leadership position, excellent performance and prospects, the TTL shares may be considered with a medium-to-long-term investment perspective.
Time Technoplast Ltd. (TTL), formerly known as Time Packaging, is a 19-year old Daman & Diu based company established in 1989. From its humble beginning as a packaging unit, later it made scorching progress and today its product portfolio consists of packaging products like drums/containers, pails, PET sheets, entrance mattings, turfs, garden furniture, automotive components, auto disabling medical disposables and warning nets. While focused on polymer products, TTL has built a consolidated technology platform that enables it to develop a wide range of innovative products.
The company entered the capital market with a public issue of 39,21,500 equity shares at an issue price of Rs.315 per share in 2007. The issue evoked a massive response and was oversubscribed 49.55 times. TTL has 21 manufacturing facilities spread across 7 locations like Daman, Silvassa, Pen and Mahad to serve the western region, Hosur to serve South India and at Baddi & Pantnagar to serve North India. It also has four overseas locations at Sharjah, Poland, Bahrain and Thailand. Mr. K. N. Venkatasubramanian is the chairman while Mr. Anil Jain is the managing director of the company.
The company is primarily engaged in the manufacture and sale of technology based polymer products catering to the growth sectors of Industrial and Consumer Packaging Solutions, Life Style Products, Auto Components, Healthcare Products and Construction & Infrastructure related products.
TTL is in the process of setting up manufacturing facilities in the Middle East, Europe and is also entering into a joint venture with the Mauser Group of Germany to acquire or set up related businesses in other Asian countries. In 2005, the company had set up a 100% subsidiary, Elan Incorporated FZE in Sharjah Airport Free Trade Zone, U.A.E., for manufacturing Packaging products and Life Style products (garden furniture). In 2006, it set up a 100% subsidiary, Novo Tech Sp Z O.O. in Kostryzn Slubice Special Economic Zone, Poland, for manufacturing Auto Components (anti-spray device) and Life Style Products (mattings and turfs). The company has also acquired 75% stake in TPL Plastech Ltd., formerly known as Tainwala Polycontainers Ltd.
TTL has also acquired 71.48% equity stake in Hyderabad based NED Energy Ltd., a closely held company engaged in manufacturing high technology Valve Regulated Lead Acid (VRLA) batteries. NED enjoys quality leadership for its batteries in the telecom sector under a well-established brand 'MaxLife'.
During the current year, NED has acquired Gulf Powerbeat WILL (GPW), which has state-of-the art production facility at South Alba Industrial Area, Manama, Bahrain for manufacture of high quality long life batteries.
Brands: TTL has built brands for its products viz. 'Time Mauser'for packaging products, 'Ecopet' for PET sheets, 'Meadowz' for Turf, 'DuroTurf', 'DuroSoft' & DuroWipe' for mattings, 'Regal' for garden furniture, '3S' for anti-spray devices (Automotive component), 'Genex' for Healthcare products and 'Netrix' for safety & warning nets. During FY08, it entered into the high growth sector of telecom batteries where its brand ' MaxLife' has already assumed quality leadership. All its brands are well recognized and accepted.
Marketing: TTL has a strong marketing & distribution network spread over 350 cities and towns across India.
Its multi-location operations allow it to leverage the competitive advantages of 'just-in-time' delivery to institutional customers with requisite logistic capabilities to feed its marketing & distribution networks efficiently and cost effectively.
Performance: For FY08, TTL posted revenues of Rs.777.36 cr. with net profit of Rs.87.06 cr., which is inclusive of an exceptional item of Rs.105.53 cr. and registered an EPS of Rs.36.44.
Latest Results: During Q2FY09, TTL notched up revenues of Rs.235.48 cr. with net profit of Rs.18.47 cr. The previous year’s net profit is inclusive of exceptional items of Rs.13.39 cr. The company posted a basic/diluted EPS of Rs.8.82 (FV: Rs.10). The annualized EPS works out to Rs.35.28 (FV: Rs.10).
Financials: The company has an equity base of Rs.20.92 cr. and the book value of its share on Rs.18.09. The company has a low debt:equity ratio of 0.52, RoCE of 17.19% and RoNW of 17.68%.
Share Profile: The company’s shares were split from Rs.10 to Re.1 during October 2008. Its shares are listed on the BSE and NSE under the B group. Its share price touched a 52-week high/low of Rs.114/27. At its current market price , it has a market capitalisation of Rs.597 cr.
Dividends: Post IPO, TTL paid is maiden dividend of 30% FY08.
Shareholding Pattern: The promoters hold 63.46% in the company while the balance 37.56% is held by non-corporate promoters, institutions, mutual funds and the Indian public. Among mutual funds ICICI Pru, Sundaram BNP Paribas, IDFC, DSP and JP Morgan have added the company’s share to their various schemes.
Prospects: TTL is among a elite group of worldwide companies to have developed the technologies for manufacture of mats, plastic fuel tanks, healthcare products.
The overall outlook for FY09 looks positive. Sectors like Speciality (value added) Chemicals, Infrastructure, Healthcare etc. are set to witness a surge in capex over the next 3-4 years. This would result in higher output in these sectors thereby generating significant demand for TTL’s products. Going forward, the company expects to maintain a healthy growth rate of above 30% in all product segments. Higher capacity utilisation leading to higher economies of scale and efficient centralised procurement of raw materials would enable TTL to improve its operating margins.
Some of the new projects under implementation include entering into high pressure pipes (HDPE). These are large diameter composite pipes that will be used for transporting water/effluents etc. under high pressure and find huge applications in upcoming SEZs, IT Parks and housing complexes etc. In addition, TTL is entering into manufacturing of Prefabs, which are used for setting up low cost mobile offices, housing, and school class rooms etc. Besides, the company is entering into manufacture of BT (Base Transmission) shelters that find wide application in telecom. All these projects shall come on stream from the end of FY09 or beginning of FY10.
Conclusion: TTL has created a consolidated technological platform encompassing the basic polymer technologies of blow moulding, injection moulding and extrusion. These technological capabilities differentiate the company from its competitors. Use of these unmatched technologies in zero defect business like industrial packaging in collaboration with world leaders like Mauser, Germany, has created huge entry barriers for its competitors enabling TTL to acquire a majority share of the market.
At its current market price , the share price is discounted less than 8 times against the industry average P/E of 10. Considering its leadership position, excellent performance and prospects, the TTL shares may be considered with a medium-to-long-term investment perspective.