Prabhudas Lilladher's research report on Mold-tek Packaging
MTEP reported 12.3% revenue growth in 2Q25 led by improvement in paints & F&F volumes. MTEP expects double-digit volume growth in FY25 led by 8-10% growth in paints, pick up in F&F segment and anticipated success in pharma sector on increased order flow for 2HFY25. MTEP’s medium to long term prospects remain promising given 1) ramp up in commercial production at new units in Panipat & Cheyyar (4000 ton capacity) for supply to Grasim. 2) Anticipated success in the pharma division led by pickup in orders due to its USP in IML printing & higher quality/safety measures. 3) mix improvement with higher growth in F&F, Q-packs and Pharma segment and 4) margin expansion as higher economies of scale as production volumes increase.
Outlook
We estimate 20% EPS CAGR over FY24-27 led by expected ramp in Pharma and benefits of supply to Birla Opus paints. MTEP is currently trading at 23x Sep’26EPS. MTEP has seen 31% correction from the peak, We cut target price to Rs803 valuing it at 25 Sep’26 EPS. (Rs853 earlier at Jun’26EPS). Retain ‘Accumulate’
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