Recommendations from Packaging and Finance Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations. 

TIME TECHNOPLAST LTD.
 
CMP - ₹103.30
BSE CODE 532856
Volume 3,61,111
Face Value ₹1
Target ₹120-127
Stoploss ₹97 (CLS)

Time Technoplast Ltd. is a multinational conglomerate with operations in Bahrain, Egypt, Indonesia, India, Malaysia, the UAE, Taiwan, Thailand, Vietnam, Saudi Arabia and USA. It is a leading manufacturer of polymer products. Analysing the company’s quarterly performance, net sales for Q4FY22 stood at ₹1,038.96 crore as opposed to ₹951.19 crore in Q4FY21, a marginal increase of 9.23 per cent. The operating profit was substantially on the higher side at ₹140.10 crore in Q4FY22 as compared to the operating profit of ₹131.31 crore in Q4FY21, posting an increase by 6.69 per cent. Net profit jumped and was ₹56.82 crore in Q4FY22, higher by 9.73 per cent as compared to the net profit of ₹51.78 crore reported in Q4FY21. In FY22, the company outperformed its pre-pandemic level from FY20. In FY22, value-added goods increased by 27 per cent over FY21 while established products increased by 20 per cent. The company’s goal is to raise the percentage of sales from value-added items and enhance margins. Hence, we recommend BUY.

ICICI Prudential Life Insurance Company Ltd
 
CMP - ₹521.65
BSE CODE 540133
Volume 57,228
Face Value ₹10
Target ₹569-578
Stoploss ₹519(CLS)

ICICI Prudential Life Insurance Company Ltd. is promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited. It offers long-term savings and protection products to meet different life stage requirements of its customers. As regards the company’s quarterly performance, net sales for Q3FY22 stood at ₹11,358.91 crore as opposed to ₹11,879.28 crore in Q4FY21, a marginal decrease of 4.38 per cent. The operating profit was substantially on the higher side at ₹315.11 crore in Q4FY22 as compared to the operating profit of ₹172.07 crore in Q4FY21, posting an increase by 83.13 per cent. Net profit jumped and was reported at ₹186.88 crore in Q4FY22, higher by 198.96 per cent as compared to the net profit of ₹62.51 crore reported in Q4FY21. Based on available levers in distribution, goods and margins, the firm management feels optimistic about attaining ₹26 billion in value in new business in FY23. Retail protection may steadily increase, which is up 50 per cent year-over-year in Q4FY22 while credit protection has room to grow, which was 46+ per cent in FY22. Hence, we recommend BUY. 

(Closing price as of May 31, 2022)