About the company:
Mold-Tek Packaging Limited traces its origin to Mold-Tek Plastics Private Limited founded in 1985 by Mr. J. Lakshmana Rao and A. Subrahmanyam to manufacture rigid plastic packaging materials with units located in Andhra Pradesh. The company was listed in BSE in 1993. Subsequently, in 2000, the promoters also commenced outsourcing services for engineering to overseas clients in the USA and EU and it was renamed as Mold-Tek Technologies Limited. Thereafter in 2008, the company underwent a re-structuring process, post which two de-merged listed entities were formed - MoldTek Plastics Limited (MTPL) deals in plastic packaging business and Mold-Tek Technologies Limited (MTTL), which is mainly involved in offering KPO services for engineering and design, specialising in civil, structural and mechanical engineering. Subsequently Mold-tek Plastics Limited was renamed as Mold-tek Packaging Limited (the rated entity). The company has manufacturing facilities at seven locations in India, with a combined capacity of 27,000 MTPA and has also
set up a plant in Ras-al-Khaimah in the UAE with a capacity of 3000 MTPA, which commenced operations in FY2017.
MPL is involved in manufacturing injection moulded decorative packaging containers, mainly pails (cylindrical containers) for paint, lube, food and other products. The company has integrated manufacturing facilities to develop the packaging product and apply different kind of labels. It also has in-house facilities to design and manufacture moulds, labels for IML products and manufacture robots used for IML process Healthy financial profile - The company has a strong financial profile characterised by healthy profit margins, low gearing and comfortable coverage indicators. In the last few years, it has witnessed revenue growth and margin improvement aided by repeat orders from the existing customers, new customer acquisition in food segments and favourable shift in
product mix towards the higher-margin IML segment. Subsequent to raising funds through a QIP in FY2015, MPL witnessed a decline in debt levels and gearing with an improvement in its coverage indicators. However, in the last two years, due to the high capex incurred, there has been an increase in working capital borrowing leading to a rise in gearing to 0.6 times as on March 31, 2018 from 0.4 times as on March 31, 2017 and 0.2 times as on March 31, 2016. With high capex plans in the near term, which may be partly debt funded, there may be some pressure on its capital structure, but
they are likely to remain at healthy levels.
Q4 (March)2018-19 REsults Update @ https://pkamc-my.sharepoint.com/:x:/r/personal/niftynext_myoffice365_site/_layouts/15/Doc.aspx?sourcedoc={6a71d43c-c70e-4fad-b2d7-9ad707fe81e0}&action=edit&wdPreviousSession=2ae99d97%2D28bc%2D4878%2D9ee6%2De716465474f5
Financial Data Highlights : Cos is growing at a rate of ~21% RoE & ROCE is 14%.
Valuations : Mold-Tek Technologies Ltd is now available at X1.3 of its EPV( March 2018-19 Financial results are considered here) & Margin of Safety (1Yr Bond Yield: Value>1 ) is 0.90. Its Fare Value arrives at~ Rs.40.20
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