Mold-Tek Packaging - ACCUMULATE - TP Rs.337 - Result Update - Kotak

- Mold Tek Packaging reported in-line numbers. Consolidated revenue during 2QFY18 stood at Rs788mn, down 12.4% QoQ. EBITDA during the quarter declined 11.8% QoQ to Rs139mn, with an EBITDA margin of 17.7% vs 17.6% in 1QFY18. Despite the decline in revenue and EBITDA the margin was flat sequentially and is attributed to the higher contribution from IML (Food and FMCG segment). PAT during the quarter stood at Rs71mn. The execution of "Dairy Milk Lickables" (higher run-rate) order helped the company to maintain EBITDA margin.

- The contribution from IML continued to remain at 49% in the volume terms and 57% in value terms in 2QFY18 and expect the momentum to continue. We expect volume growth to remain strong and with new incremental orders coming into IML segment, we expect EBITDA margin to remain over 17% in the coming quarters. At CMP, the stock trades at 18.7x FY19E earnings, given the traction in Food and FMCG segment and higher visibility of volumes in 2HFY18, we recommend ACCUMULATE rating on the stock, with an revised target price of Rs337 (earlier Rs304), valuing it at 20x (earlier 18x) FY19E earnings.

Shares of Mold-Tek Packaging Limited was last trading in BSE at Rs.309.6 as compared to the previous close of Rs. 315.35. The total number of shares traded during the day was 1825 in over 71 trades.

The stock hit an intraday high of Rs. 317 and intraday low of 309.25. The net turnover during the day was Rs. 573408.

Source : Equity Bulls

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