Accumulate Mold-Tek Packaging, target price Rs 1000 : Nirmal Bang Institutional Equities

Nirmal Bang Institutional Equities has accumulate call on Mold-Tek Packaging with a target price of Rs 1000. The current market price of Mold-Tek Packaging Ltd. is Rs 945.55.

Mold-Tek Packaging, incorporated in the year 1997, is a Small Cap company (having a market cap of Rs 3112.18 Crore) operating in Plastics sector.

Mold-Tek Packaging key Products/Revenue Segments include Plastic & Plastic Products, Other Operating Revenue, Scrap and Export Incentives for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 178.98 Crore, up 11.56 % from last quarter Total Income of Rs 160.44 Crore and up 10.85 % from last year same quarter Total Income of Rs 161.46 Crore. Company has reported net profit after tax of Rs 17.32 Crore in latest quarter.

The company’s top management includes Mr.J Lakshmana Rao, Mr.Togaru Dhanraj Tirumala Narasimha, Dr.Venkata Appa Rao Kotagiri, Mr.Eswara Rao Immaneni, Dr.T Venkateswara Rao, Mrs.J Mytraeyi, Mr.Srinivas Madireddy, Mr.P Venkateswara Rao, Mr.A Subramanyam, Mrs.Madhuri Venkata Ramani Viswanadham. Company has M Anandam & Co. as its auditors. As on 30-09-2022, the company has a total of 3 Crore shares outstanding.

Investment Rationale
The brokerage believes that Mold-Tek Packaging (MTEP) should witness some softness in overall growth in 3QFY23 despite the strong growth trajectory of the Food & FMCG (F&F) segment. The brokerage's analysis suggests that the Paints segment’s volume for MTEP tends to be ~10% lower in 3Q compared to average quarterly revenue run-rate. Channel checks also indicate de-stocking by Paint companies to some extent.

Promoter/FII Holdings
Promoters held 34.11 per cent stake in the company as of 30-Sep-2022, while FIIs owned 12.02 per cent, DIIs 20.1 per cent.