All Time Plastics Ltd. (Avoid)

Highlights

All Time Plastics Limited (ATPL), incorporated on 2001, is a manufacturer of plastic consumer ware products for everyday household needs and had 1,848 SKUs across eight product categories, namely: (i) Prep Time (ii) Containers (iii) Organization (iv) Hangers (v) Meal Time (vi) Cleaning Time (vii) Bath Time (viii) Junior.

ATPL primarily produce consumer ware for customers to market under their own brand names (B2B basis), which is known as white-label manufacturing. However, they also sell consumer ware products under their proprietary brand name All Time Branded Products (B2C basis).

For All Time Branded products, ATPL collaborate with super distributors, distributors, and modern trade retailers, who play key roles in the distribution process. In FY25, they sold All Time Branded Products to 22 modern trade retailers, including Spencer’s Retail Limited, as well as five super distributors and 38 distributors with whom they do business directly across 23 states and six union territories in India.

Out of the total proceeds of Rs. 4,006 mn, ~Rs. 1,430 mn would go towards repayment of certain borrowings availed by the company, ~Rs 1,137 mn would go towards purchase fo equipment & machinery and installation of automated storage and retrieval system (ASRS) for warehouse. ~Rs. 232 mn would be utilized towards general corporate purpose and ~Rs. 1,260 mn would go towards existing selling shareholders of the company.

Key Highlights

• Indian plastic consumer ware industry estimated to grow at a CAGR of 11.6 pct between FY25 and FY30, growing from Rs. 104 bn to an estimated market size of Rs. 179 bn by FY30. Branded players accounted for ~54 pct of the Indian consumer ware market and is projected to increase to approximately 60 pct by FY30, growing at a CAGR of 13 pct.
• The company manufacture their products across all 3 facilities located at Daman, Silvas and Manekpur with all electrical machines, complemented by robotics and automatic assembly systems. As of now they have capacity of 33,333 tonnes per annum and in FY25 79.5 pct capacity were utilized.
• ATPL primarily export their products to retailers in the European Union, the United Kingdom and the United States, and also sell products in India to IKEA. In FY25 IKEA contributed almost ~59.3 pct of sales followed by Asda which contributed 9.11 pct of sales.
• As part of sustainability, they integrate recycled materials into manufacturing processes. These include recycled polypropylene (RPP), recycled ABS-PC blends, and recycled polyethylene terephthalate (R-PET). These materials help reduce environmental impact while maintaining quality standards.
• ATPL’s key growth strategies include (i) Expand existing production capacity (ii) Propel manufacturing processes through digital innovation and enhancement of automation and mould development capabilities (iii) Continue to expand plastic homeware product offerings (iv) Diversify revenue stream through the manufacturing of bamboo products (v) Acquire new customers and sell more products to existing customers.
• The Sales/EBITDA/Profit of the company have grown 12.19 pct/17.51 pct/29.35 pct CAGR over FY23-25. In FY25 the company sales stood at Rs. 5,582 mn, rose 8.8 pct YoY. EBITDA of the company grew 4.4 pct YoY to Rs. 1,013 mn while margins shrank 80 bps YoY to 18.2 pct.  During FY25 the company posted profit of Rs. 473 mn, rose 5.6 pct YoY.

Key Risk

• The company might face client concentration risk as single customer contributes more than half of sales. Loss of this customer can materially impact company’s profitability.
• ATPL manufacture plastic consumer ware products. A shift in consumer preferences away from plastic products, changes in consumer preferences for plastic consumer ware products, regulations, can lead to a reduction in plastic consumer ware purchases.
• The sales of the company have grown 8.8 pct YoY while trade receivable grew 79.7 pct YoY which will add strain on ATPL’s working capital.

Financial Performance

Peer Comparison based on FY25 Financials

Valuation

All Time Plastics Limited (ATPL) is a manufacturer of plastic houseware, with a focus on design, innovation, & sustainability. At the upper end of the price band of Rs. 275, the issue is priced at a PE of 38.1x its FY25 earnings on post issue equity capital. The issue appears to be fully priced. Given the higher dependency on one single customer and rising demand for biodegradable plastics, alternative houseware products with materials like ceramic, glass, metals can become key risk to business. Based on these factors one can Avoid this issue.

Disclaimer: The views shared in blogs are based on personal opinions and do not endorse the company’s views. Investment is a subject matter of solicitation and one should consult a Financial Advisor before making any investment using the app. Investing using the app is the sole decision of the investor and the company or any of its communication cannot be held responsible for it.