It is not Musk,s Tesla. The Company could have clarified this…
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The order value is insignificant for the company. Last month, Mr. Anil jain informed in CNBC interview that Tesla is 7 Cr per year.
Hi,
I have seen that interview but I think it is 7-8 crs per month though it is not binding contract.
Please correct me if my understanding is wrong.
Thanks!
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It is definitely not going to have any impact as the Company was already planning to close this division.
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Guys I wanted to bounce off my thesis on TT benefitting from China+1 theme in chemicals. If chemicals manufacturing does well in India, TT should see increased order in container / drum business. If this holds good than it can be a pick and shovel play to China+1 in theme in chem space (besides the much talked about CNG play). Has any1 explored this angle and what are is the thought process here?
Further, Mitsui Chem is in similar space and makes these containers. They make 25% ROE while TT struggles on making respectable ROE. What can be the reasons. Difficult to understand why they would have low capacity utilization in this business when Chemical sector is doing so well .
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Last 4-5 concalls, Management was mentioning about China+1 opportunity. But it is slowly materializing, you can expect only 15% growth in this segment.
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I don’t remember exact concall but management clearly mentioned that they can not achieve more than 16-17% ROE/ROCE in established packaging products. They can achieve more ROE in value added products only.
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The following may be growth drivers
a) CNG composite Cascade & onboard Cylinders
b) LPG Composite cylinders
c) HDPE Pipes
d) US Business
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Thanks Suresh. I am confused. Someone pls ask this from mgmt in next concall. Mitsui Chem supplies to Aarti etc and make 28% ROE on packaging products and TT is struggling to make similar ROE on overall portfolio of conventional + value added products?
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I think you are referring to this video. Thanks!
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Promoter has given gudance of 15.5 EDITA MARGIN BY 2025 with cah level of 700crs. 2000cr of CNG busines will be added withch hasve higher margin 18-22. once this will work out eEDITA MARGIN will be 17.5-18. Top line will be near 7000cr. IF you see profit margin of 10%. bottomline will be 700cr+…
disclosure: I am holding it.nad will keep for 3-5 yrs.
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The tender from IOCL for supply of Type IV LPG composite cylinders gets confirmed with both Time Techno and Supreme getting 7.59 lakh and 7.35 lakh cylinder orders respectively. Price per cylinder is around 2400.
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This indeed a good news for Tie technoplst shreholders. Promoters has same thing in conf. call. Now Their thesis is right. I have added more today. TYPE IV CYLINDER IS A BIG PLAY. opportunity size is 80 million /year. No dount TTPL will reach 2.4 million size with this expansion…
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Great relief with decreasing prices of OIL. I expect now oil/ commodity price will not much affect TTPL’s margins.
As such promoter has told that resin prices are not much corelated to Oil price. But with 40% rise price of oil it will affect and profit margin may come down.
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Great sanketB. I like your effort. But about CNG opprtunity. it is all over and above of existing Business and it will be around 2000cr / year. IF you calculate top line with CNG business it will be around 7000cr with EBITA margin around 17-18%. See Research Report by ICICI
ICICI-Direct-Time-Technoplast.pdf (744.1 KB)
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This is still 2x in topline from current levels & at current valuations I think there is lot of margin of safety for story to play out. Further R&D activities on hydrogen cylinders can be a new catalyst
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0ba5e03a-0554-4cad-a492-4321e131472d.pdf (358.5 KB)
I feel good about these announcement is that TTM is looking for strategic partner/investing partner. Even thought TTM is market leader in all places they are operating, it could not make any meaningful growth. These partnership may be a game changer and bring growth in asian, Middle eat and USA businesses.
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Looking for strategic partners/investors because they need money towards future expansions of value added products,
If they are bringing new partner for existing packaging business then its a good decision as competitive intensity in packaging business is high and ever increasing.
Do anyone have factory location and production details?
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What is CNG price outlook and sustainability?