The stock price of the dominant player in the rigid plastic packaging industry experienced a slight decline to ₹769.25 per share following the sale of a stake by FII.
At 11:25 a.m., Mold-Tek Packaging Ltd shares were trading at ₹773 a share, down ₹1.60 or 0.21 percent from the previous close price on the exchange, and the company has a market capitalization of ₹2,568 crores.
According to data from the National Stock Exchange (NSE), on March 14, the company saw the sale of 236,368 equity shares by Foreign Institutional Investors, specifically Goldman Sachs India Equity Portfolio. The shares were sold at an average price of ₹804.98 per share, totaling ₹19.03 crore in value.
The company experienced a 6.5 percent increase in operational revenue, rising from ₹155 crore in Q3FY23 to ₹165 crore in Q3FY24. However, the net profit declined by 13 percent, dropping from ₹16 crore to ₹14 crore. This decrease is attributed to higher depreciation and financial costs.
Mold-Tek Packaging is engaged in the manufacturing of injection-molded containers for lubes, paints, food, and other products.
The company holds a dominant position in the Indian rigid plastic packaging market, commanding a substantial 25% market share. Additionally, it is recognized as a trailblazer and expert in In-Mold labeling (IML) decoration.
Distinguishing itself further, the company stands as the sole packaging entity, achieving complete backward integration, and overseeing the in-house production of molds, IML labels, and even robotic systems.
The company specializes in the production of injection-molded containers for lubricants, paints, food, and various other products, the company operates 12 manufacturing units and 2 stock points across the country.
Shares of Mold-Tek Packaging Ltd have dropped by 17% over the past six months and experienced a 13% decline in the last month.
The organization currently possesses a total capacity of 47,290 MTA, with approximately 70% of that capacity being utilized. To facilitate expansion, the
company has undertaken a new project funded by a combination of a 30% loan and 70% retained earnings. The commencement of commercial production for this expansion is anticipated on or before March 31, 2024.
Written by Omkar Chitnis
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