Mold-Tek Packaging Ltd. share price target

There has been a slight delay in commencement of production at the Mysuru plant from December end to Mid January. As of now supplies to Asian Paints are being met from the Hyderabad plant. The Vizag plant will go on stream by end of February. Hence both plants will begin to contribute to production March onwards. The company expects to clock in...

There has been a slight delay in commencement of production at the Mysuru plant from December end to Mid January. As of now supplies to Asian Paints are being met from the Hyderabad plant. The Vizag plant will go on stream by end of February. Hence both plants will begin to contribute to production March onwards. The company expects to clock in...

Mold-Tek Packaging Ltds (MPL) Q2FY19 net revenue grew by 27.5% YoY in Q2FY19, driven by healthy volume growth of 19%. However, growth in EBITDA was relatively lower at 18.9% YoY, while EBITDA margins declined by 120bps YoY at 16.5%, impacted by input cost inflation.

Mold-Tek Packaging (MTPL) in Q2FY19 posted consolidated revenues of Rs. 100 Cr. (28% YoY, 2%QoQ) aided by 19%/9% volume/pricing led growth.

Mold-Tek Packaging (MTPL) in Q1FY19 posted consolidated revenues of Rs. 102 Cr. (up 16%/8%; YoY/QoQ basis) due to value growth led by a favourable product mix change in favour of high margin F&F; segment. EBITDA during the quarter stood at Rs. 18 Cr up 13%/8% on a YoY/QoQ basis respectively.

We initiate coverage on Mold-tek packaging Ltd. (MPL) with a BUY rating and price target of Rs 377 based on PE of 22x at FY20E EPS of Rs 17.1. We believe 1) leadership in IML manufacturing 2) complete in-house backward integrated operations 3) foray in high margin Food and FMCG segment 4) capacity expansion would be key growth catalysts for MPL. We expect MPL to clock Net Sales/EBITDA/PAT CAGR of...

MTPL Q1FY19 PAT was in-line with estimates, but EBITDA was above estimates, due to higher realisation. Despite the increase in raw materials costs, margin during the quarter remained flat QoQ, backed by higher IML sales and higher realisation. MTPL is on its way of sustainable growth story, backed by capacity addition at Mysuru, Vizag, greenfield plant at Hyderabad...

Mold-Tek Packaging's Consolidated Revenue and Net profit increased at 3.4% and 8.4% respectively on yoy basis. The company reported subdued quarter due to lacklustre demand mainly from paint and lubricant segments on account of GST transition. However, revenue from Food and FMCG segment remained strong with addition of new products and clients.