MoldTek Packaging
Mold-tek Packaging is among the leaders in rigid packaging in India. It was the first to bring IML to India in 2011. It uses something called “ROBOTS” to render the entire packaging and labeling process free of human intervention.
With IML in place, the company now caters to Paints, Lubes and FMCG industry which will be the key driver of growth going forward. Moldtek caters to some of the best names in the paint and lubes industry and now the FMCG industry too. Asian Paints, Kansai Nerolac, Shell, Exon, Cadbury, P&G are just some such names.
Key points to invest in this stock:
- New dedicated plant addition for Asian Paints to drive the paints segment revenues
- Increased contribution of IML product revenue
- Commencing of business in overseas
- Fully automatic operations using ROBOTS and near 70% of utilization of plants
- Steady growth in revenues & profits
- Zero Debt Company
| Financials | 2016 | 2017 |
| Revenue (%) | (3.3) | 11.8 |
| EBIDTA (%) | 12.8 | 11.3 |
| Pat (%) | 42.9 | 11.5 |
| EPS (%) | 42.8 | 12.0 |
| Profitability | ||
| EBIDTA Margin (%) | 16.6 | 16.5 |
| PAT margin (%) | 8.7 | 8.7 |
| RoCE (%) | 18.0 | 18.4 |
| RoE (%) | 18.9 | 18.9 |
| Valuation | ||
| EV/EBIDTA | 18.2 | 16.2 |
| EV/Sales | 3.0 | 2.7 |
Technical View:
The stock is near to its 52 Week high now. For new investors/traders, the best time to enter the stock is when it closes above its 52 week high and gives confirmation of a bull trend. Bullish trend confirmation can be arrived when the following conditions are met.Aaron Positive is above 90
- Aaron Positive is above 90 and Aaron Negative is below 25.
- MACD crossover happens above Zero level.
- RSI is above 60.
Another opportunity to enter the stock can be when the stock reaches its support zone near 270 levels and then bounces back.
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