Time technoplast

Business is around 1200cr.
Valuation Deal around 2000cr.
Indian business (2/3)
Valuation must be 4000cr.
Cash deal of overseas business is around2000cr.
Rerating of comapny is on card. Market cap should be around 4000cr…
Video link is attached.

Disclosure holding 4% of PF


AR22 notes

  • Value added products (21% contribution vs 20% in FY21): Composite IBCs (11% vs 10% in FY21), composite cylinders (6% same as FY21), MOX films or techpaulin (4% same as FY21)
  • R&D team comprises of 30
  • Time Techno is third largest manufacturer of IBCs globally
  • Overseas business contributed 32% of sales (vs 31% in FY21). EBITDA margin for domestic operations was ~14.0% and for overseas operations was 13.7%
  • Company is restructuring overseas business through strategic divestment, proceeds of which will be used for repayment of debt, capex for composite cylinders and for core Indian business
  • Has manufacturing facilities at 31 locations across the globe (including 21 within India)
  • Received single largest for Type-IV LPG Composite Cylinders to IOCL of 0.75 mn LPG cylinders to be supplied over 12-months
  • CNG cascade order book is 250 cr.
  • Total capex incurred was 185.7 cr. (vs 103.5 cr. in FY21). Capex for established products was 78.5 cr. (vs 67 cr. in FY21), and was 107.2 cr. (vs 36.5 cr. in FY21) for value added products
  • Key raw material is PE granules (derivative products of oil and natural gas) which are largely imported
  • KMP and director remuneration: 1.96 cr. (vs 1.64 cr. in FY21)
  • Number of employees: 2’521 (vs 2’423 in FY21) (no increase in salary of employees or key managerial personnel)
  • Statutory auditor fee: 40 lakhs (vs 45 lakhs in FY21)
  • Number of shareholders: 73’356 (vs 37’672 in FY21), price (low): 60.2, price (high): 94.5

Disclosure: Invested (position size here, bought shares in last-30 days)


Good Q2 results. Margins a little down but sales on track. Margins will improve coming quarters with decline in crude prices.
Their strategy of improving product mix is working well. At expected EPS of 12 price should be 150.


Just an additional observation - the cash flow from operations has improved to ~175 Cr vs ~110 Cr last year on account of better management of working capital. Going forward the key monitorable has to be the debt reduction and finance cost.

Investor presentation - here

Q2 Results - here


As they have the pass through mechanism of raw material inflation, believe raw material reduction will also be passthrough to customers. Also the raw material they directly related to crude prices but the price is more to do with supply - demand.

Company came out with decent nos, with 12% YOY sales growth and flat PAT. Concall notes below.

  • Packaging product order book is monthly
  • Growth was driven by overseas business (21% YOY vs 8% for India)
  • Pipe business target is 200 cr.+ in FY23
  • LPG cylinder: 80% domestic + 20% exports. In recent quarter, export mix increased to 40% due to higher rainfall resulting in changing demand schedule from IOCL. Running at 85% capacity utilization. No planned expansion until they get order from other OMCs
  • Guiding for 1%+ improvement in EBITDA margins and 20%+ revenue growth in H2FY23
  • Generally, H2 is 55% of business
  • Expansion of Supreme Industries in LPG composite cylinders is because they don’t have enough capacity to service current order book. Even after their expansion, Time’s capacity will be higher
  • CNG on-board cylinder marketing will start only after expansion is complete

Disclosure: Invested (position size here, bought shares in last-30 days)


If they can crack LPG market this company can triple its sales… and price can reach 500… CNG cylinder market is very small compared to LPG. but it takes a lot to get the PSU oil marketing companies to move… in so many years they have managed to get one order from IOCL!
I think after IOCL it will happen sooner than later…



Company is going to show best ever results in q3 and q4 FY 23. They should expand composite capacity faster and launch composite for cars.
2 big triggers

  • composite cylinder for cars
  • composite cylinders for LPG - they need to get larger orders from IOC and also other OMCs.

Received New Single Largest Order for Type - IV CNG Cascades and Expansion Status
Company has received order from Maharashtra Natural Gas Limited for supply of CNG Cascades made from Type - IV Composite Cylinders, for a total value of INR 134 Crores (approx.) to be supplied within one year period.

In order to meet growing demand for Type - IV Composite Cylinders for CNG Cascades, Management is undertaking capex in a phased manner:

Phase - I (FY 2022-23)
The Company is increasing the manufacturing capacity by 300 cascades (18,000 cylinders) in FY 2023 with a capital outlay of INR 55 Crores.
With the above expansion, the total cascade manufacturing capacity will increase from 180 to 480 cascades (28,800 cylinders) by March 2023.

Phase - II (FY 2023-24)
Under Phase-II, Management has already undertaken expansion program to increase the capacity by further 600 cascades (36,000 cylinders) and the same will be completed in Q4 FY 2024 with an outflow of INR 125 Crores. Total cascade manufacturing capacity after completion of Phase-II will be 1,080 cascades (64,800 cylinders) per year from March 2024.


Time Techno came with very good results when compared with other packaging cos. Sales grew by 20% and EPS by 14%. Company is on track of exceeding 350 cr. in composite CNG and LPG cylinders in FY23 and can do 500+ cr. in FY24. Concall notes below.


  • Received 134 cr. order for CNG cascade from Maharashtra Natural Gas Limited
  • Divestment will be announced in 3 months, process is a bit delayed as International business did very well in 2022 and valuations will be driven by CY22 nos (& not on CY21 nos)
  • CNG cascade expansion: FY22 capacity was 180 cascades (10’800 cylinders). By March 2023, capacity should increase to 480 cascades (@55 cr. capex; 18.33 lakhs/cascade). This should further expand to 1080 cascades (64’800 cylinders) by March 2024 (@125 cr. capex; 20.83 lakhs/cascade)
  • Pipes and Mox film business have grown slower in FY23 vs other businesses. Pipe business has revived with cooling off PVC prices
  • CAPEX: 169 cr. in 9M, includes 53 cr. towards capacity expansion, re-engineering automation for established product + 116 cr. towards value-added product
  • Expect 1200 cr.+ revenues in Q4FY23 and 15% growth in FY24 (established products should grow at 10-12%, and value added at 25%+)
  • IOCL has renewed their LPG cylinder order
  • CNG + LPG revenues will be over 500 cr. in FY24 due to limited capacity
  • In a normalized scenario, working capital for established products is 110 days and is 70 days for value added products
  • Have applied to PESO for approval of oxygen cylinders

Disclosure: Invested (position size here, no transactions in last-30 days)


Wonder why valuation of company is so low inspite of very good numbers.
Low debt and good credit rating.
Demand more than supply in high margin composite business.



Q4 results out.

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I used to sell Time’s technoplast Duro Turf door mat and rolls in 2010 - 2014.

Company was pioneer in this field and they were the first one to enter this market.

This segment has grown very fast since then but duro turf has not been able to maintain that growth rate or leadership position.

Market is now flooded with Chinese imports and other Indian companies Turf which offer similar products at far cheaper rate.

I guess, it is not a priority division for the company.

Also, I just visited their website and at bottom it still shows year 2017.


100% Pledge released. Sales have increased by 18% annually, Margins stable. Receivable and inventory days have also marginally improved.
Decent results by the Company.

Investor presentation:


Another good set of results, with sales and EPS growing by 15%. Company has scaled their composite CNG and LPG cylinders to 345 cr. and are now hoping to cross 500 cr. in FY24. Concall notes below


  • Sales: 4289 cr. (2831 cr. domestic + 1458 cr. overseas). Targeting 15% growth in FY24
  • Capex: 223 cr. (87 cr. towards established products + 137 cr. towards value-added products)
  • CNG cascade capacity of 480 cascades (28’800 cylinders; 300 cr. potential sales & 90% utilization) has come onstream and is fully sold out (current order book of 260 cr.). Phase II expansion will be fungible between hydrogen and CNG cylinders
  • Divestment of overseas assets will finalize by September 2023, currently looking at alternate options as well (like selling assets in different geographical markets to different customers)
  • ROCE will be 15-16% in FY24 and exceed 20% in 3-years (without taking divestments into account)
  • Overseas split: Asia (50%), Middle East (34%), USA (16%)
  • Rate of interest is 9.25% (blended with overseas). Has increased by 1.5%

Disclosure: Invested (position size here, no transactions in last-30 days)


Thank you for the notes - I think they’re being conservative with CNG cascade peak revenue possible. 180 cascades capacity = ~150 cr revenue in FY23; with 480 cascades capacity at full utilization ~400cr revenue should be possible, though current order book is 260 cr.

What I’m worried about is 2 years back during their analyst day, LPG was touted to be the biggest growth driver, while CNG Cascades was considered a relative optionality. There doesn’t seem to be much movement with Indane after the initial + repeat order of ~7L cylinders. There are ~29 cr gas connections = 58 cr cylinders. 25% conversion is ~14.5 crore cylinders, which is about 100x current Type-IV LPG cylinder manufacturing capacity in India (Time Techno = 1M, Supreme = 0.5M).


Agree… LPG is bigger opportunity - superior product as safer and lighter. can be very useful in rural areas/ last mile connectivity where cylinders will always be used…
Somehow they are not able to grow that business.

Main problem is with the higher cost associated with composite cylinder. Who will bear this cost … Customer or Oil Marketing Companies.

Customers - Those who opt for composite cylinder needs to make the additional deposit for it.