Motilal Oswal has maintained its buy rating on Time Technoplast with a target price of ₹280, representing a 54% upside potential from current levels. According to the research report dated September 25, 2026, the brokerage maintains its positive outlook on the company based on strong fundamentals and growth prospects. The recommendation comes after FY26 marked a historic year for Time Technoplast, with the company achieving its most successful year in company history. As per the latest report, the brokerage values the stock at 20 times FY28 estimated EPS, with RoE/RoCE (pre-tax) expected to expand to ~14%/19% in FY28 despite QIP-led equity dilution.
FY26 marked a historic year for Time Technoplast, with the company achieving its most successful year in company history. As reported by Motilal Oswal, revenue, EBITDA, and PAT grew by approximately 12%, 14%, and 21% year-on-year respectively, each scaling new highs. Despite facing challenges from geopolitical tensions, the prolonged Russia-Ukraine conflict, and volatility in crude oil, polymer prices, freight costs and currencies, the company successfully weathered the turbulence and converted external pressures into opportunities to demonstrate its robust business model. The momentum has also continued into the first quarter of FY27, according to Motilal Oswal, with the brokerage expecting this momentum to remain intact through the rest of FY27.
The company's predominantly B2B model, backed by a disciplined monthly pricing mechanism, proved instrumental in protecting margins during challenging conditions. According to Motilal Oswal's analysis, Time Technoplast was able to pass on input cost movements to customers with a lag of 20-25 days, thereby maintaining profitability even in an unpredictable external environment. This pricing strategy allows the company to navigate volatile operating conditions effectively, with the monthly pricing mechanism being the key differentiator that separates this from a volume story alone. The brokerage expects revenue growth of more than 20% in FY27, following a 25% year-on-year increase in the first quarter, with EBITDA growth exceeding volume growth viewed positively despite EBITDA margins appearing lower during inflation periods.
The company's EPS has demonstrated remarkable growth from ₹4.16 to ₹10.12 over five years, with margins remaining relatively stable during this period. Management is targeting 13% to 15% volume growth over the medium term, with Motilal Oswal seeing several potential growth drivers. The board is set to consider the merger of the company's around 75% owned subsidiary, TPL Plastech, with Time Technoplast on September 29, 2026. As per Motilal Oswal report, TPL Plastech reported FY26 revenue of ₹420 crore and PAT of ₹290 crore, and the merger could improve operational efficiency. The company has also completed a greenfield plant at Bhilad in Gujarat, a fully automated facility using robotics with a potential revenue capacity of ₹100 crore. The company is also exploring opportunities in hydrogen cylinders and has received a small order from NTPC for a locomotive pilot project, with continued orders in the composite business providing another growth avenue.
Motilal Oswal expects revenue, EBITDA and PAT to grow at Compound Annual Growth Rates (CAGR) of 17%, 16% and 21% respectively between FY26-28. The brokerage estimates that Return on Equity (RoE) and pre-tax Return on Capital Employed (RoCE) could rise to around 14% and 19% by FY28 respectively. Revenue is projected to increase from ₹61.1 billion in FY26 to ₹72.7 billion in FY27 and ₹83 billion in FY28. EBITDA is estimated to rise from ₹8.9 billion to ₹10.3 billion and ₹12 billion over the same period, while adjusted PAT is projected to increase from ₹4.7 billion in FY26 to ₹5.6 billion in FY27 and ₹6.9 billion in FY28. Adjusted EPS is expected to rise from ₹9.5 to ₹11.3 and ₹14 over the same period. The company's focus on plant automation and consolidation is expected to aid efficiency, with interest-cost savings following debt repayment using QIP proceeds supporting PAT growth.
