Multibagger IT stock posts 450% profit growth in Q3, up 170% from 52-week-low
4 min read . Updated: 30 Jan 2023, 10:33 PM IST
Premium- With a market valuation of ₹486.62 Cr, Mold Tek Technologies Ltd. is a small-cap company that operates in the IT industry.
With a market valuation of ₹486.62 Cr, Mold Tek Technologies Ltd. is a small-cap company that operates in the IT industry. The company is a global leader in providing engineering and technology solutions for a range of engineering services. The firm has indicated its mechanical division is one of its future possibilities, in addition to its remarkable performance in Q3 as a multibagger stock.
On a consolidated basis, the company reported revenue from operations of ₹40.72 Cr in Q3FY23 as compared to ₹23.83 Cr recorded in Q3FY22, representing a YoY growth of 70.87%. Mold Tek Technologies posted a net profit of ₹9.20 Cr in the quarter ended December 2022 against ₹1.66 Cr recorded in the quarter ended December 2021, registering an impressive growth of 454% YoY. The company recorded an EBITDA of ₹13.58 Cr in Q3FY23 as compared to ₹3.39 Cr recorded in Q3FY22, recording a YoY growth of 300%.
On a standalone basis, the company recorded net sales of ₹36.48 Cr as compared to ₹21.88 Cr in the year-ago quarter, registering a YoY growth of 66%. Mold Tek Technologies posted a standalone net profit of ₹9.14 Cr in Q3FY23 as compared to ₹1.63 Cr recorded in Q3FY22, representing a YoY growth of 460%. In the quarter ended December 2022, the company recorded an EBITDA of ₹13.50 Cr as compared to ₹3.35 Cr recorded in the quarter ended December 2021, representing a growth of 302% YoY.
Mechanical Division's revenue grew impressively by 75.55% to $1.996 million in 9M 2022–23 from $1.137 million in 9M 2021–22. Mechanical Division's revenue grew by 96.77% to $0.974 million in Q3 2022–23 from $0.495 million in Q3 2021–22 and by an outstanding 58.37% to $0.615 million in Q2 2022–23, both of which contributed to the company's significant growth in Q3 and 9M 2021-22.
Mold Tek Technologies said in a stock exchange filing that “Fixed Teams billing increased and we are expecting even more Fixed Team clients in Civil division to increase the performance. There is a considerable work on hand and hoping the trend to continue in coming quarters. The work on hand for Civil division compared to last year 31st December has increased by 37%. Improved quality with timely execution has resulted in Tier 1 clients offering larger projects with good hourly rates. Company is expecting new clients in Fixed teams and Precast Concrete design/detailing services which has good growth prospects. Connection design and member design capacities have been created and company hope to enhanceits revenuesandprofitability with this entry into high value engineering services."
By completing BIW orders for one of the top EV manufacturers back in 2019–20, Mold-Tek Technologies Limited developed its engineering services capabilities for electric vehicles. Europe and North America are home to professional design houses for Tier 1 and Tier 2 automobile manufacturers. The company anticipates a considerable rise in the demand for design services from clients in the automotive industry as a result.
Mold Tek Technologies said in a stock exchange filing that “We are focusing on Electric Vehicles domain and ourassociation with the Tier 1 and 2 clients has contributed to the Mechanical division growth in last few quarters. In the upcoming quarters we are taking measures to increase the capacity both in-house and also through sub-contract to execute more numberof orders we are receiving from clients in Europe and Mexico. Weare also entering few other domains in Mechanical division. Weare actively exploring US Opportunities for Mechanical Division, if fruitful that can fuel further growth in this division. The work on hand as on 1Jan 2023 for Mechanical Division has increased many folds compared to the samelast year. With the boom in EV automobiles and launching of several new models future looks very bright for our Mechanical division. While Mechanical division has madelossestill Q1 2022-23 it turned around strongly with Division Profitability of $ 142K in Q2 and $ 254K in Q3. Future performanceis expected to be better with increase in order flow."
Mold Tek Technologies stated that in order to grow its operations in the USA, it is also looking for acquisitions in the fields of connection design, structural engineering, and mechanical engineering.
On the NSE, the shares of Mold-Tek Technologies Limited closed today at ₹170.00 apiece level, up by 9.43% from the previous close of ₹155.35. In the last 1 year, the stock has generated a multibagger return of 106.81% and on a YTD basis, it has rallied 9.71%. In the last 6 months, the scrip has rallied 75.17% and 9.71% in the 1 month. The stock touched a 52-week-high of ₹183.30 on (19-Jan-2023) and a 52-week-low of ₹63.00 on (24-Feb-2022), indicating that at the current market price, the stock is trading 7.25% below the recent 1-year high and 169.84% above the 1-year low.
