Time Technoplast (TIMETECHNO)

FairStock Score: 41/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Profit growth of 25.39% is well ahead of sales growth of 12.76%, showing operating leverage and margin expansion
• Low debt/equity of 0.22 and Piotroski F-Score of 7/9 indicate a financially sound, low-distress balance sheet
• ROCE of 17.35% is respectable for an industrial plastics business
• Latest quarter net profit of ₹129 Cr on sales of ₹1,565 Cr shows a healthy margin profile
• Promoter holding of 47.51% supports some alignment with minority shareholders

Concerns

• P/E of 20.32 and P/B of 5.07 offer little margin of safety; book value is just ₹37.12 against a price of ₹188.13
• ROE of 11.28% is not exceptional, so the premium valuation depends on continued growth rather than high capital efficiency
• Dividend yield of 0.68% is low, leaving investors dependent on capital gains
• FairStock Score of 40/100 is mixed, and the wide 52-week range suggests potential cyclicality or sentiment swings

AI Analysis

At ₹188, Time Technoplast is neither a bargain nor an obvious trap. The company compounds earnings at a healthy clip: profit grew 25.39% while revenue rose 12.76%, indicating operating leverage and better product mix. ROE of 11.28% is acceptable but not exceptional, and ROCE of 17.35% suggests management is deploying capital reasonably well. The balance sheet is conservative with debt/equity of 0.22 and a Piotroski F-score of 7 out of 9, pointing to solid financial health. However, at 20.32 times trailing earnings and 5.07 times book, the market is already paying for continued execution. The PEG of 1.07 gives some comfort, but that math depends on sustaining 25% profit growth, which is ambitious for an industrial plastics firm. Book value of ₹37.12 is thin support at this price; dividend yield of 0.68% means income investors get little while waiting. The latest quarter's sales of ₹1,565 Cr and net profit of ₹129 Cr, annualized, roughly justify the price if margins hold, but we have seen cyclical industries flatter investors who extrapolate a good year. Promoter holding of 47.51% aligns interests, though not at a level that prevents capital misallocation. The 52-week range of ₹154 to ₹249 shows the stock has already corrected from its peak; that removes some froth but does not make it statistically cheap on a Graham basis. In Buffett's language, this is a decent business run with prudence, but the price means we are paying up for growth. I would watch whether sales growth accelerates and whether ROCE can move toward 20% before adding it to my circle of competence.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer