Accumulate Mold tek Packaging; target of Rs 621: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Mold tek Packaging with a target price of Rs 621 in its research report dated February 07, 2025.

Broker Research

February 11, 2025 / 15:30 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Mold tek Packaging

MTEP reported 15.2% revenue growth in 3Q25 led by improvement in realization and stable volume growth. MTEP expects double-digit volume growth and improvement in EBITDA/kg to ~Rs.40 in FY26. MTEP has received setback in its outlook due to 1) lower orders from APNT for Paint pales 2) rising competition in Food and FMCG segments like Ice cream and dairy from smaller players 3) delayed ramp-up in pharma and ’s 4) slow growth in lubes business. Consequently, FY26 guidance is dependent more on 1) Execution of orders for Surf Excel and Horlicks from HUL 2) Higher share gains by Birla opus in Paints and successful scalability of new products in pharma. MTEP has entered a low capex phase (Rs600-650mn in FY26) after a capex of Rs1.2bn/year for the past three years.

Outlook

We estimate 15% Sales CAGR & 30% EPS CAGR over FY25-27. We cut the target price to Rs621 valuing it at 22 Dec’26 EPS (Rs709 earlier at Sep’26EPS). Retain ‘Accumulate but expect back ended returns given tepid growth in select segments off late.

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