Mold-Tek Packaging Q1 Results Review - Ramp Up Of New Capacities Expected In H2: Nirmal Bang

Nirmal Bang Report

Mold-Tek Packaging Ltd.’s Q1 FY25 Ebitda came ~7% below our estimate on account of underutilused capacity in recently commissioned projects, Paints volume lagging expectations and food and FMCG growth largely driven by Q-packs (low margin segment).

The management has maintained mid-teens volume-led revenue growth guidance for FY25, mainly banking on ABG volumes (paints) and new orders in F&F.

While the internal target for Ebitda/kg is Rs 40 for FY25 itself, we believe Mold-Tek Packaging might fall short of the same because of the ongoing commissioning of projects and relatively subdued demand.

Taking cognisance of the quarterly performane and ongoing project updates, we have tweaked our earnings estimates.

Maintain Buy after rolling forward valuation to June-26E earnigs and a revised target price of Rs 920 (27 times PE).

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