Anagram sets Mold-Tek target price of Rs 200
Anagram StockBroking has rated Mold-Tek Technologies Ltd a ‘buy’ with a target price of Rs 200 over 12-15 month timeframe.
By INDIATIMES NEWS NETWORK |
MUMBAI - Anagram StockBroking has rated Mold-Tek Technologies Ltd a ‘buy’ with a target price of Rs 200 over 12-15 month timeframe.
Earlier known as Mold-Tek Plastics, the company is into packaging and structural knowledge process outsourcing.
According to the broking house, at current market price of Rs 127, the stock trades eight times expected 2007-08 (Apr-Mar) earning of Rs 16 per share.
The company proposes to demerge its plastics and KPO business, and the process is expected to be completed by November this year.
Post-demerger, Anagram believes the KPO business will attract significantly higher valuations and unlock value for the existing shareholders.
The company’s plastics division is into injection and blow-moulded plastic packages, also producing plastic containers, PET bottles and jars at its facilities in Chennai, Daman and Hyderabad.
Its client list includes Procter & Gamble, ITC, Asian Paints, Ponds India, Goodlass Nerolac, Indian Oil Corporation, Veedol, and HPCL.
Any slowdown in the economy could impact demand for packaging products, and thus affect the share price, Anagram said in its latest report.
Mold-Tek KPO is the only listed company in structural engineering design and detailing space.
With India likely to capture 15 per cent of over Rs 2 lakh crore KPO industry by 2010, the company is expected to see strong growth ahead, the Anagram report says.
Anagram sees the company enjoying net profit margin of 45 per cent in this business.
Earlier known as Mold-Tek Plastics, the company is into packaging and structural knowledge process outsourcing.
According to the broking house, at current market price of Rs 127, the stock trades eight times expected 2007-08 (Apr-Mar) earning of Rs 16 per share.
The company proposes to demerge its plastics and KPO business, and the process is expected to be completed by November this year.
Post-demerger, Anagram believes the KPO business will attract significantly higher valuations and unlock value for the existing shareholders.
The company’s plastics division is into injection and blow-moulded plastic packages, also producing plastic containers, PET bottles and jars at its facilities in Chennai, Daman and Hyderabad.
ADVERTISEMENT
Its client list includes Procter & Gamble, ITC, Asian Paints, Ponds India, Goodlass Nerolac, Indian Oil Corporation, Veedol, and HPCL.
Any slowdown in the economy could impact demand for packaging products, and thus affect the share price, Anagram said in its latest report.
Mold-Tek KPO is the only listed company in structural engineering design and detailing space.
With India likely to capture 15 per cent of over Rs 2 lakh crore KPO industry by 2010, the company is expected to see strong growth ahead, the Anagram report says.
ADVERTISEMENT
Anagram sees the company enjoying net profit margin of 45 per cent in this business.
ADVERTISEMENT
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
