Multibagger small cap inventory: Sustaining their shedding streak for the second straight day, shares of Mould-Tek Applied sciences tumbled one other 4% in intraday commerce on March 11, reaching ₹444.65. The inventory, which noticed a one-way surge between April 2020 and July 2023—leading to a 467% acquire—started declining within the following months and has remained in a downtrend so far, shedding 58% of its worth in 19 months.
The inventory has ended the final seven months within the crimson, with February seeing the sharpest drop of 17%, adopted by January with a 14% decline. Regardless of the steep fall, the inventory stays up 137% during the last 5 years.
The corporate is likely one of the key gamers in inflexible plastic packaging in India, specializing in manufacturing injection-molded containers for lubricants, paints, meals, and different merchandise. It operates ten processing crops and two inventory factors throughout India to make sure quicker provide. In response to its web site, Mould-Tek has a large injection molding capability of roughly 50,000 TPA.
Axis Securities upgrades inventory to ‘purchase’
Home brokerage agency Axis Securities, in its newest word, upgraded its score on the inventory to ‘Purchase’ from ‘Maintain’ and maintained its goal worth at ₹600, indicating an upside of 30% from the inventory’s present buying and selling worth.
“We proceed to worth the inventory at 18x FY27E earnings and keep our goal worth of ₹600 per share. This means an upside of 30% from the present market worth (CMP), with a lovely valuation publish the latest worth correction,” stated Axis Securities.
Axis Securities’ optimistic stance follows its go to to Mould-Tek Packaging’s crops (Unit 1 and Unit 10) in Hyderabad, the place it interacted with the administration. The corporate offered insights into its ongoing enlargement, cost-saving initiatives, and near- to medium-term development plans.
In response to the brokerage, the corporate is increasing its IML (In-Mould Labeling) printing capability by 40% in Q4FY25 to fulfill rising demand. It additionally famous that Mould-Tek stays the one packaging firm in India that designs and manufactures injection moulds and customized robots for IML ornament whereas additionally producing IML labels in-house.
The corporate’s exports are gaining momentum, with gross sales prior to now 9 months doubling year-on-year (YoY).
Mould-Tek has invested ₹10 crore in a brand new plant and equipment over the previous few months to construct capability devoted to Aditya Birla Group’s (ABG) paint enterprise, with an extra ₹5 crore deliberate for future investments.
The brokerage underscored that rising demand for pharma packaging presents a powerful development alternative for Mould-Tek’s enlargement into this huge sector. Moreover, with the brand new U.S. authorities imposing duties on China, export alternatives to neighboring international locations are anticipated to extend.
Disclaimer: The views and suggestions given on this article are these of particular person analysts. These don’t characterize the views of Mint. We advise traders to test with licensed specialists earlier than taking any funding choices.
