Can Time Technoplast Tap the ₹4,000 Cr Opportunity with Its CPRI-Certified Batteries?

Synopsis: Time Technoplast Limited received key certification for its battery subsidiary, strengthening its position in the utility battery segment and improving participation in institutional procurement and future growth opportunities.

The shares of this small-cap company is majorly engaged in the manufacturing of technology and innovation driven polymer & composite products, were in focus after its subsidiary received key certification. 

With a market cap of Rs. 7,820 crores, shares of Time Technoplast Limited were trading at around Rs. 158 per share, which is 36.5 percent  discount from its 52 weeks high of Rs. 249 per share and is trading at a P/E of 17.5 whereas industry P/E stands at 20.6

What is the NEWS

Time Technoplast Limited has recently announced that its subsidiary PowerBuild Batteries Private Limited has been awarded Central Power Research Institute (CPRI) certification for IS 1651:2013 for OPzS Stationary Batteries (Tubular Batteries in Transparent SAN Containers). This is a significant milestone for the company in the utility-grade battery market. OPzS Stationary Batteries/Tubular Batteries in Transparent SAN Containers are utilized in power plants for power generation, power transmission substations, thermal power plants, nuclear power plants, hydroelectric power plants, offshore oil rigs, petrochemical plants, etc. 

The company estimates that the power generation segment of the Indian market for batteries would be around Rs. 3,000-4,000 crores. The OPzS/TBS segment is gaining momentum for PowerBuild Batteries Private Limited. PowerBuild Batteries Private Limited is one of the few players in India offering OPzS/TBS Stationary Batteries. The company stated that the existing plant and machinery are sufficient to manufacture these batteries without any additional capital expenditure. This is likely to boost the capacity utilization of the company, thereby improving the overall EBITDA.

About the Company and Financials

Time Technoplast Limited is mainly involved in the business of manufacturing technology and innovation-driven polymer & composite products, with a strong presence in the Asia and MENA regions. It holds a dominant market position with over 55 percent market share in domestic Industrial packaging. In addition, the company ranks as the second-largest manufacturer of MOX films in India and is also the second-largest composite cylinder manufacturer globally.

Year on Year analysis: Revenue from operations has increased from Rs. 1388 Crores to Rs. 1565 Crores, up 12.7 percent. Operating profit has increased from Rs. 201 Crores to Rs. 234 Crores, up 16.4 percent and net profit has increased from Rs. 102 Crores to Rs. 129 Crores, up 26.4 percent 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 1511 Crores to Rs. 1565 Crores, up 3.5 percent. Operating profit has increased from Rs. 223 Crores to Rs. 234 Crores, up 4.9 percent and net profit has increased from Rs. 117 Crores to Rs. 129 Crores, up 10.2 percent 

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