Time Technoplast is up among the top five gainers since the opening bell today, with the stock price rising 8% to hit an intraday high at Rs.89.50. Its 52-week high is at Rs.94.50.
This exuberance is on the back of an order update. The company, after a long wait, has finally started getting orders from PSU Oil Marketing Companies (OMCs) for Type-IV LPG Composite cylinders which have numerous technical and operational advantages over conventional metal cylinders such as light weight, corrosion proof and rust free, long service life and 100% explosion proof.
To begin with, the Company has received trial orders for 30,000 cylinders (appx) for various destinations in India. As per published data by the Government Authorities, the total number of LPG cylinders (mainly metal) which are in population is around 28 crores with an average life of 10 — 15 years. In view of this, market potential for Composite cylinders in the period ahead is quite substantial on account of various advantages over metal cylinders as mentioned above. Marked increase in the prices of metal in the last 1 year will enable faster replacement of metal cylinders with Composite Cylinders for LPG for household and commercial use.
The Company is already having approval from Government nominated Authority i.e. Petroleum and Explosive Safety Organization (PESO) for all sizes (ranging from 2 kg to 22 kg) of cylinders and is exporting to more than 48 countries.
The worldwide market for Composite cylinders is also very huge and the Company is amongst the top 2 players in terms of product range and revenue.
The Board is scheduled to meet on 13th August for Q1FY22 earnings consideration.