Understanding the Current Rating
The 'Hold' rating assigned to Time Technoplast Ltd. indicates a neutral stance on the stock, suggesting that investors should neither aggressively buy nor sell at this juncture. This rating reflects a balanced assessment of the company’s strengths and challenges based on four key parameters: Quality, Valuation, Financial Trend, and Technicals. The Mojo Score currently stands at 50.0, down from 71, signalling a moderation in the stock’s overall appeal compared to previous evaluations.
Quality Assessment
As of 14 January 2026, Time Technoplast demonstrates a strong quality profile. The company maintains a high Return on Capital Employed (ROCE) of 15.08%, which is indicative of efficient management and effective utilisation of capital resources. Additionally, the company’s debt servicing capability remains robust, with a low Debt to EBITDA ratio of 1.10 times, underscoring prudent financial management and a manageable leverage position. These factors contribute to a 'good' quality grade, reflecting operational strength and financial discipline.
Valuation Perspective
The valuation of Time Technoplast is currently considered 'attractive'. The stock trades at an Enterprise Value to Capital Employed ratio of 2.7, which is below the average historical valuations of its peers in the plastic products industrial sector. This discount suggests that the market is pricing the stock conservatively relative to its capital base. Despite this, the Price/Earnings to Growth (PEG) ratio stands at 3, indicating that while the stock is attractively valued on some metrics, growth expectations are moderate and priced in accordingly.
Financial Trend and Growth
Financially, the company exhibits a positive trend. Operating profit has grown at an annualised rate of 21.67%, signalling healthy expansion in core earnings. The latest half-year results ending September 2025 reinforce this growth trajectory, with operating cash flow reaching a peak of ₹430.52 crores and a half-year ROCE improving to 17.71%. The debt-equity ratio has also improved to a low 0.23 times, further strengthening the balance sheet. Profit growth over the past year has been 16.4%, despite the stock’s share price declining by approximately 14.8% during the same period.
Technical Outlook
From a technical standpoint, the stock currently exhibits bearish signals. The share price has underperformed the broader market, with a 1-year return of -14.99% compared to the BSE500 index’s positive 9.02% return over the same period. Shorter-term price movements also reflect weakness, with declines of 3.42% over the past month and 16.31% over three months. This technical weakness has contributed to the moderation in the Mojo Score and the Hold rating, suggesting caution for investors relying on momentum and chart-based indicators.
Stock Performance Summary
As of 14 January 2026, Time Technoplast’s stock price has shown mixed performance. The day’s change was a modest +0.31%, but the stock has experienced declines over multiple time frames: -3.71% over one week, -3.42% over one month, and -19.19% over six months. The year-to-date return stands at -3.83%. These figures highlight the stock’s recent volatility and the challenges it faces in regaining investor confidence despite solid underlying fundamentals.
Implications for Investors
The Hold rating suggests that investors should maintain their current positions without initiating new purchases or sales based solely on the present outlook. The company’s strong quality and positive financial trends provide a foundation for potential future gains, but the subdued technical indicators and recent price underperformance warrant a cautious approach. Investors may wish to monitor upcoming quarterly results and market developments closely to reassess the stock’s trajectory.
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Sector and Market Context
Operating within the Plastic Products - Industrial sector, Time Technoplast is classified as a small-cap company. The sector itself has faced headwinds due to fluctuating raw material costs and demand variability. Despite these challenges, Time Technoplast’s operational efficiency and growth in operating profit suggest resilience. However, the stock’s underperformance relative to the broader market index highlights the need for investors to weigh sector-specific risks alongside company fundamentals.
Conclusion
In summary, Time Technoplast Ltd.’s current 'Hold' rating by MarketsMOJO reflects a balanced view of the company’s strengths and weaknesses as of 14 January 2026. The stock benefits from strong quality metrics and attractive valuation, supported by positive financial trends. Conversely, bearish technical indicators and recent price underperformance temper enthusiasm. Investors should consider these factors carefully, maintaining a watchful stance while awaiting clearer signals of sustained momentum or fundamental shifts.
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