Stock Corrects 28% in 2025: Polymer Leader Expands PE Pipe Business for Future Growth

With its latest expansion into PE pipes for gas distribution, the company strengthens its infrastructure presence, boosts capacity utilization, and aligns with India’s modernization initiatives

Shares of a Time Technoplast Ltd,leading polymer solutions company surged 3.87 per cent on Tuesday, reaching an intraday high of Rs. 366.30. The uptick in stock price followed the company's announcement of an expansion in its Polyethylene (PE) pipe business, introducing a new product specifically designed for the Gas Distribution sector in both public and private markets.

In an exchange filing, the company confirmed its decision to introduce this additional PE pipe variant, reinforcing its commitment to infrastructure development. The expansion leverages the well-known advantages of PE pipes, such as their lightweight nature, durability, and extended lifespan, making them a preferred choice over traditional materials in various applications.

The company has already established a strong foothold in the PE pipe industry, catering to diverse sectors such as water supply, irrigation, sewage management, desalination plants, power plants, and cable ducting. With manufacturing facilities in India's western, southern, and eastern regions, it has supplied PE pipes through Engineering, Procurement, and Construction (EPC) contractors.

Now, by extending its portfolio to include PE pipes for gas distribution, the company aims to capitalize on its existing customer base. More than 20 Gas Distribution Companies, spanning both public and private sectors, have expressed interest in the newly developed product. This expansion aligns with the company's strategy to strengthen its infrastructure business and tap into the growing demand for gas distribution networks.

This development is expected to enhance the company’s capacity utilization with minimal adjustments to its existing manufacturing equipment and processes. The company anticipates a 30 per cent growth in the PE pipe segment by optimising the material mix.

To support this initiative, the company will leverage its in-house Research & Development (R&D) team and an estimated capital expenditure (CAPEX) of up to Rs. 8 crore. This investment has already been factored into its broader CAPEX plan, which includes regular maintenance, automation, product development, and expansion projects in India and overseas.

The company estimates a development period of four months, which includes obtaining necessary approvals from the Bureau of Indian Standards (BIS). The financial benefits from this initiative are expected to materialize from the second quarter of FY2025-26.

This strategic move also aligns with the Indian government’s push for infrastructure modernization. The expansion of gas distribution networks, mainly through initiatives like PM Ujjwala Yojana and Smart City projects, drives demand for durable, long-lasting PE pipes to replace traditional metal pipes in underground installations.

The global Polyethylene (PE) pipe market is poised for significant expansion, with projections estimating a valuation of $13.7 billion by 2029. Increased investments in renewable energy, urban infrastructure, and water management solutions drive this growth.

Given its established market presence and ongoing product diversification, the company remains well-positioned to benefit from this trend. In terms of financial performance:

• Net Sales stood at Rs. 1,387.74 crore in December 2024, reflecting a 4.76 per cent rise from Rs. 1,324.65 crore in December 2023.
• Quarterly Net Profit increased 10 per cent year-over-year to Rs. 100.76 crore from Rs. 91.60 crore.
• EBITDA improved by 5.08 per cent, reaching Rs. 202.24 crore in December 2024.
• Earnings Per Share (EPS) climbed to Rs. 4.44 from Rs. 4.05 during the same period.

Despite these positive indicators, the company’s stock price has corrected over 28 per cent on a year-to-date basis in 2025, reflecting broader market volatility.

The company is a multinational leader in polymer-based products, operating in 11 countries with over 40 production facilities worldwide. Its diverse portfolio includes industrial packaging, lifestyle products, automotive components, and composite cylinders. With a market capitalization exceeding Rs. 8,090 crore, it continues to expand its footprint in key industrial and infrastructure segments.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.