Motilal Oswal Maintains Buy Recommendation for Buy Time Technoplast, Targets Price of Rs 280

Time Technoplast (TIME) Maintains Stability Amid Geopolitical Tensions

Stable Business Operations Time Technoplast's business operations remain broadly stable despite the ongoing conflicts in parts of the Middle East, which account for approximately 11% of the company's revenue. Its B2B industrial packaging business, which comprises approximately 65% of revenue, has moderate growth but a very stable business profile.

Mitigating Supply Chain Disruptions The company's strategy of sourcing raw materials, manufacturing, and selling finished products locally across 11 countries helps mitigate major supply chain disruptions arising from geopolitical tensions. Additionally, Time Technoplast has explored options to diversify sourcing of glass fiber and other key raw materials for its composite products through alternate overseas markets and sea routes.

Capex Execution and Financial Performance Capex execution remains on track, including the commissioning of a greenfield plant with 600 CNG cascades capacity along with a recycling unit, and completing the brownfield expansion of its IBS facility in 4QFY26. While higher prices may slightly impact volumes in the short term, they are expected to support value growth and margin expansion, aided by low-cost inventory. The impact on financials is expected to be negligible.

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Outlook and Recommendation We reiterate our BUY rating with a target price of INR280 (69% upside), based on a 20x FY28E P/E. The company's focus on developing composite cylinders for various applications, along with a rising VAP mix, supports its robust outlook.