Result Update: Mold-Tek Packaging - ACCUMULATE - TP Rs.304 - Kotak

Mold Tek Packaging (MTPL) reported better than expected numbers. Standalone revenue stood at Rs814mn, up 15.5%/20.2% YoY/QoQ. EBITDA during the quarter grew 29.6% QoQ to Rs132mn, with an EBITDA margin of 16.3% vs 15.1% in 3QFY17, the sequential expansion in margin is attributed to the higher contribution from IML. PAT during the quarter stood at Rs70mn. Consolidated PAT stood at Rs58 mn vs estimates of Rs53 mn. Management has indicated that, with the execution of "Dairy Milk Lickables" order, the contribution from IML has increased to 52.7% in Q4FY17 from 40-41% in 3QFY17 and expect momentum to continue. We expect volume growth to remain strong and with new incremental orders coming into IML segment, we expect EBITDA margin to also remain strong in the coming quarters. At CMP, stock trades at 17x FY19E earnings. We maintain our Accumulate rating on the stock, with a revised target price of Rs 304 (earlier Rs290), valuing it at 18x FY19E earnings.

Shares of Mold-Tek Packaging Limited was last trading in BSE at Rs.269.6 as compared to the previous close of Rs. 273.65. The total number of shares traded during the day was 15232 in over 621 trades.

The stock hit an intraday high of Rs. 278.85 and intraday low of 267. The net turnover during the day was Rs. 4144777.

Source : Equity Bulls

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