Time Technoplast Ltd

Products -
a) Industrial Packaging (66% of FY22 revenue) (Market leader almost wherever it has plants, world leader in large size plastic drums)
b) Infrastructure (9%)
c) Technical & Lifestyle (4%)
d) IBC (11%) (3rd largest in world)
e) Composite cylinders (6%) ( 2nd largest in world)
f) Mox Films (4%)

How the company makes money?
They are finding ways to replace metal products with polymers products with some kind of added benefit to customer.

They continuously try to find ways to reduce operational costs by keep upgrading machineries with new technology, automation etc
Get better discount from PE supplier due to bulk orders and additional discount for immediate payments.
Above makes them lowest cost producer. This is the reason they became market leader in polymer space in almost all the regions it has plants.
Due to size & design of IBC more quantity can be shipped with standard size containers, saving cost for customers.
Composite cylinders have many benefits such as explosion proof, corrosion proof, light weight etc makes it ideal choice for customers to jump from metal cylinders. There is very less competition in this area as for lower pressure only 2-3 competitors and for higher pressure cylinders TTL is only manufacturer in India and 2nd largest in world, so new market is being created.

Why I’m still holding this stock?

1. Revenue will increase consistently in the future

Reason:
a) Margin’s of their Industrial packaging business is under pressure due to increasing competition, but it has tailwinds in action because it has plants in various countries who will benefit from china+1.
b) New market being created for composite cylinders(LPG, CNG cascade, CNG onboard, Hydrogen, oxygen etc) which may grow rapidly, Oil marketing companies initiated tenders for composite LGP cylinders (they may replace LPG metal cylinders with composites initially in humid regions as metal catches rust)
CNG cascades are in high demand because gov rapidly increasing CNG stations.
c) IBC in growth stage due to logistics benefit to customers, Tailwind for packaging products due to china+1
d) Infra products expected to grow fast due to gov spending

2. Margin’s expected to increase from hereon
Reason:
a) Share of high margin value added products increasing
b) Restructuring of overseas business will reduce share of low margin products
c) Mittal’s coming up with large polymer plant in india, which will reduce import cost of raw materials in future

3. RoCE expected to improve
Reason:
Management has recognised the importance of working capital management, and they have planned to reduce debtor days and inventory days, it will free up lot of cash

4. Debt expected to reduce
Reason: With restructuring of overseas business some portion of received cash will be used to reduce debt

5. Cashflow will increase
Reason:
a) After restructuring overseas business, cash proceeds will be available for future growth
b) cashflow will increase with improved margin’s
c) cashflow will increase with reduction of debt
d) cashflow will increase with reduction of maintenance capex
e) Cash will free out from working capital

6. Promotors released most of the pledge shares
They have taken their lesson, and now fully focused on business

Company seeing short term headwind of rupee depreciating with respect to dollar as they import around 60% of raw material.
They are able to pass on price increase/decrease with few months delay.

Disc.: Invested since 2019 and holding

Goldi to invest Rs5000 crore in renewables.

@Paxrxxthi

I think you are referring to a defensive portfolio. Usually it is meant as a capital preservation tool for investors who have already amassed enormous wealth and do not want to take too much risk. It will broadly consist of stalwart kind of companies which are sector leaders and the sectors will consist of evergreen businesses. Things like Asian Paint, Pidilite, Nestle, Hind Unilever, Bata, Havells, CG Consumer (or any other similar company), Bajaj finance, HDFC Bank (or similar bank) , so on and so forth. Idea here is not to lose too much money even during big market drawdowns and if portfolio value does go down due to market condition, it recovers (and more) when the markets recover.

For a 25 year old, who wants to invest on his own, its better to first think of building up capital, so that the question of preservation comes around. If there is not enough capital, there will be no question of preservation. So better focus on growth stocks and try to compound the portfolio at healthy rates and then think about defensive PF.

First you must learn the ropes of investing by reading appropriate books and observing how markets work and how wealth is created.

Till now, big ticket Electrolysers were being imported.However, Some 6 manufacturers of Electrolyser have already started operations as per the link given below and many more may start in coming days, Govt has planned a PLI schemes for electrysers - details awaited.
Regarding supply chain vendors for Electrolysers- we need to work and find out the MSME’s involved.

https://www.rechargenews.com/energy-transition/india-emerging-as-key-base-for-hydrogen-electrolyser-production-with-8gw-by-2025/2-1-1305267

Found interesting hence posting for VP friends…