Motilal Oswal has issued a buy rating on Time Technoplast with a target price of ₹280 in its research report dated February 13, 2026. According to the broker's analysis, the recommendation is based on the company's robust outlook and attractive valuation at approximately 14x FY28E P/E. The target price represents a 20x FY28E P/E multiple on the stock.
Time Technoplast delivered a healthy and in-line performance in Q3FY26, with volume/revenue/EBITDA/PAT growing 16%/13%/16%/25% YoY respectively. As reported by Motilal Oswal, EBITDA margin expanded 46 basis points YoY to 14.9%. The volume growth was driven by both overseas operations (up 17%) and Indian businesses (up 15%). For the nine-month period, the company achieved revenue/EBITDA/PAT growth of 11%/14%/21% YoY.
Value-added products (VAP) revenue grew 18% YoY, achieving an 18.8% EBITDA margin. According to Motilal Oswal's analysis, established product revenue increased 10% YoY with a 13.4% EBITDA margin. The strong performance across both product categories demonstrates the company's diversified revenue streams and operational efficiency improvements.
According to Ajay Khandelwal, Fund Manager at Motilal Oswal AMC, India's earnings and investment cycle is broadening with mid- and small-cap companies set to lead the next phase of growth. As reported by Moneycontrol, Khandelwal noted that Nifty 50 companies' contribution to India's overall profit pool has declined from nearly 65% fifteen years ago to around 55% currently. The current cycle is characterized by 12% earnings growth expectations with stable margins, with growth shifting beyond traditional Nifty 50 heavyweights to consumer, industrial and manufacturing companies. Unlike previous cycles where capacity expansion was concentrated in capital-intensive sectors, the current cycle is being led by more capital-light and scalable businesses.
The broker maintains its buy recommendation citing the company's robust outlook and attractive valuation as key factors warranting a re-rating. As reported by Motilal Oswal, the combination of strong financial performance, margin expansion, and growth across both domestic and international markets supports the positive investment thesis. The target price of ₹280 reflects confidence in the company's ability to maintain its growth trajectory amid the broader shift toward mid and small-cap stocks leading the next earnings cycle.
