BackThis multibagger stock gets 'Add' rating from Centrum Broking
The brokerage firm has Buy rating on the multibagger stock that has surged over 115% in a year's period
PremiumMold-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 shares have rallied over 115% in a year's period, whereas, it is down about 8% in 2022 (year-to-date or YTD) so far. Centrum Broking sees more upside on the multibagger stock.
The domestic brokerage and research firm has initiated coverage on Mold-tek Packaging shares with an Add rating with with target price of ₹808, given the higher growth prospects and improving RoE/RoCE trajectory for next three years.
Mold-Tek is the only packaging company globally which is fully backward integrated. The company has an In-house tool room, design studio, robot manufacturing, label making to enable faster innovations and new product designs.
“Full backward integration has allowed company to maintain its EBITDA profile despite fluctuations in the raw materials. Over FY13-21, EBITDA margins for the company have gone up consistently from 10.4% to 20%. We believe total backward integration is the biggest moat for the company," the brokerage added.
Mold-Tek Packaging, a market leader in injection moulded rigid packaging, has scaled up its capacity to 40,000 tn spread across 10 different plants catering to the likes of Asian Paints, Castrol, Amul and HUL. The company expanded aggressively into IML (In-Mould Labelling) by foraying into Food & FMCG (F&F) in FY14, Centrum Broking highlighted in the note.
Further, the company intends to setup capacity of 2500 tn on its own premise in Unnao by end of FY23 and expand its catering to Berger Paints, Edible Oil and FMCG clients. In terms of new product launches, company is venturing into Injection Blow Molding (IBM) containers for FMCG, cosmetics and pharma industry and Digital IML for paints and lubricant companies.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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