I came across this video which was for educational purpose, however best part is they took the example of Time Techno. They have forecast numbers for next two years. Interesting video:
1 Like
Hi Guys, Could someone please help me understand why the tax rate varies QoQ for Time Techno ( I have seen this phenomenon in many companies though)
Is it due to some product mix ?
Is it due to distribution of sales geographically ?
Seems like they might have annualised it, accounting less in previous quarters and then finally effect is seen in last quarter.
yeah, that could be a possibility. because historically it seems March quarter has been highest tax %.
I will write to company and confirm.
1 Like
Hey,
Do you know, what products they are in and how they define market share. 65% market share means that the entire sector in india is just 3-4K crore.
http://www.bulkpack.in/industry.htm
Source seems to be reliable one.
But still i too think 65% is little bit exaggerated but not impossible.
ICICI Direct - Hold Time Technoplast; Target 125
Kotak Securities - Buy Time Technoplast; Target 140
1 Like
Disc - Entered today at 115 for tracking.
1 Like
The way they are developing new products is quite interesting.
https://www.moneycontrol.com/stocks/reports/time-technoplast-announcement-under-regulation-30-lodrpress-release-media-release-13450361.html
Any latest news on this?
It looks like it has bottomed. What is the negative news in this company?
Pledging of shares n markets are in no mood to give good valuations to companies having debt.
As per q2fy20 numbers company has debt of 747 crores and interest payment ttm = 108 crore. Interest rate in this case is 14.4%. In present scenario why would company take loan at such high rate?
Also, Why promoters have pledged 16.72% of their holdings?
1 Like
Pledging has been done for a land parcel worth about Rs.200cr in Andheri, which they will be developing into commercial space n looking to sell it for around Rs.500cr in future.
But the question is why don’t they just sell over the land straightaway and reduce pledge n debt both. After-all they are not a real estate developer.
It’s all done to make money in the process through bogus bills
1 Like
is this a dodgy company Atul ?, will benefit from your insight ?
I had the shares, but the performance was too fluctuating and therefore I sold out. In general, it’s true that companies enter unrelated businesses or creating lot of subsidiary are shady and get wiped out.
Not much activity on this thread but share price has been beaten down to around 3.50 times TTM PE. It was available at less than 3 PE in March.
Some updates not mentioned in the thread
-
"What is the status of the FIR filed by Aburi?
Well, the FIR has been withdrawn by them. They realised that it was a mistake on their part. They have withdrawn the complaint and EOW is in the process of quashing the FIR, that is what we heard. We had also withdrawn the cases that we had filed against them for defamation. So, I guess everything is fine but the interesting thing is that we are now getting big order from them. We have already got the first one and they have"
- Promoters have done some buying in March 2020
-
Out of 51.19% shares held by promoters in Dec 19, 21.03% were pledged.
-
Company has informed to exchanges today that it has commenced operations after being temporarily shut for lockdowns.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/77970ab0-aecd-4474-8b83-6554576eb544.pdf -
Company stands to benefit from reduction in interest rates as most of its borrowings are from banks at high variable rates
Prima facie this seems to be a case of extreme pessimism by shareholders. Worth pointing out that HDFC Mutual Fund holds 9% of total shares and Reliance Nippon Mutual Fund holds 1.14% of total shares as at Dec 31, 2019.
Moreover, company stands to benefit from tailwinds to key customer segment - chemicals and fall in crude will also aid margins in near term as company normally passes the decrease with a lag.
ICICIDirect and Nirmal Bang also covers stock.
Disc - Invested
4 Likes
@Aditya942000 - what’s the source of this information? I was going through old con-call and in this one - https://www.timetechnoplast.com/pdf/financial-results/transcript/2019-20/Time-Technoplast-Q2-Concall-transcript-November-15-2019.pdf - it’s mentioned on pg 14 that it’s for own corporate office building. Mr. Anil Jain confirms that it’s for ‘a building’ … Do you have any additional information on this?