Geojit's research report on Mold-Tek Packaging
Mold-Tek Packaging Ltd (MTEP) is one of the leading manufacturers and suppliers of high quality airtight and pilfer proof containers/ pails in India for paints, lubricants, food and FMCG. Q4FY23 revenue grew by 3% YoY, while PAT grew by 33%, led by better product mix, softness RM cost and lower tax rate. EBITDA/kg was up by 4% YoY, due to lower cost & higher contribution from the F&F segment. Margins expanded by 140bps YoY to 19.3%. We anticipate volume growth of 20% CAGR over FY23-25E, with healthy volumes from paints and the F&F segment, steady growth in lubes, and traction in pharma packaging. MTEP’s long term outlook remains intact, given the addition of new products (Pharma packaging), strong client additions, a strong balance sheet & healthy RoE of 17% (avg. 5yrs).
Outlook
We value MTEP at a P/E of 30x, on FY25E and reiterate Accumulate rating with a target price of Rs.1,131.
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