When Should You Buy Time Technoplast Limited (NSE:TIMETECHNO)?

Time Technoplast Limited (NSE:TIMETECHNO), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹114 at one point, and dropping to the lows of ₹79.15. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Time Technoplast's current trading price of ₹79.15 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Time Technoplast’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Time Technoplast

Is Time Technoplast Still Cheap?

Great news for investors – Time Technoplast is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is ₹117.16, but it is currently trading at ₹79.15 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Time Technoplast’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Time Technoplast look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 28% over the next year, the near-term future seems bright for Time Technoplast. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since TIMETECHNO is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TIMETECHNO for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TIMETECHNO. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that Time Technoplast has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in Time Technoplast, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.