Prabhudas Lilladher has given Buy recommendation for Mold-tek Packaging with a target price of Rs. 598 in its research report issued on Jul 28, 2021
Prabhudas Lilladher’s research report on Mold-tek Packaging
We are increasing our Sales & EPS for FY22/23 by 1%/4% and 1%/4.3% respectively on the back of 1) Increased volume growth due to continued momentum in the paint sector and sequential recover in FMCG and 2) better realizations due to pick up in sales of pump and increase n contribution of IML products. We believe that increase in capacity (Paints – at Vizag, Mysuru and Uttar Pradesh and food and FMCG at Hyderabad), ramp up of pump capacity, addition of new segments (detergents, dates, nutrition powder, agro-nutrients) and acceptance of new launches like QR coded IML products will help increase in market share from new and existing clients.
We estimate Sales and PAT CAGR of 19.7%/37.0% over FY21-23 and maintain buy rating with target price of Rs 598 (21xFY23EPS). MTEP is trading at 17.9xFY23EPS which is at a steep discount to Paint & FMCG companies.