- 28 Jul 2022
- ICICIdirect Research
New client addition drives toplineMOLDTKPAC - 911 Change: -16.20 (-1.75 %)
News: Mold Tek Packaging reported consolidated sales growth of 55% YoY to Rs 208 crore led by volume growth of 49%. Gains in wallet share, new customers, and the launch of new products drives volume growth. Revenues increased at a CAGR of 21% over the course of three years, driven mostly by a volume growth of 12%. EBITDA margin declined by ~100bps YoY due to lower gross margin. PAT came in at Rs 21.7 crore up by 80% YoY (32% three-year CAGR).
Views: We believe, Mold-Tek packaging has reported a good performance on the topline front led by strong volume growth. In the current quarter, the company expanded its customer base in the FMCG and food business while also gaining wallet market share from current clients. The company also plans to invest Rs 125 crore in capital expenditures in FY23 to increase its manufacturing capacity. The FMCG & Food division, as well as Pharma OTC items, are driving significant volume growth for the company. Further, ease in commodity prices will help EBITDA margin recovery going forward.