Mold-tek Packaging is a leading player in the rigid packaging business and is into manufacturing decorative packaging containers for paint, lubricant, FMCG & foods (F&F) industry. The company reported a strong Q2FY22 revenues led by paint segment.
MoldTek’s revenue during the second quarter of the current fiscal grew around 34% on a yearly basis to ₹160 crore, led by 48% YoY revenue growth in the paint segment. Overall volume growth was at 8% on a yearly basis. Higher raw material price weighed on gross margin. Its profit after tax or net profit increased 31% year-on-year (YoY) to around ₹18 crore supported by higher revenue.
The multibagger stock has surged over 157% this year so far (year-to-date), whereas it is up more than 170% in a year’s period. Mold-Tek’s share price has grown by around 3.3x over the past five years, from ₹215 in November 2016 to to around ₹719 per shar levels in November 2021.
The domestic brokerage and research firm ICICI Securities has maintained its buy rating on the Mold-tek Packaging shares with a target price of ₹850 per share with a time horizon of around twelve months.
Capacity addition, new launches (foraying into pharma packaging) and increasing wallet share from existing clients are expected to drive revenue, as per the brokerage, which could act as key triggers for future stock price performance.
ICICI Securities also likes Asian Paints in its coverage universe. Asian Paints is the market leader in the decorative paint and expanding its product portfolios along with dealer expansion in tier II and tier III cities. The brokerage’s Buy rating on Asian Paints shares comes with a target price of ₹3,425 per share.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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