The shares of the leading rigid plastic packaging manufacturer gained around 1.7 percent to Rs 939.85 per share after the company is set to inaugurate its new manufacturing unit in Haryana.
With a market capitalization of Rs 3,080 crore. On Wednesday, Mold-Tek Packaging Ltd shares were trading at Rs 932.10 per share, up Rs 7.45 or 0.81 percent from the previous close price of Rs 924.65.
The company announced that it will inaugurate its new manufacturing unit in Panipat, Haryana, on January 3rd, 2024. For an investment of Rs 35 crore, the company has constructed a new unit, that will add a capacity of 2,500 MTA to an existing capacity.
The company commenced building additional manufacturing capacity a few months ago, to meet the needs of Grasim Industries (Aditya Birla GroupPaints Division) and Food & FMCG items, the firm began expanding its manufacturing capacity.
The enterprise has a total existing capacity of 47,290 MTA with an approximate utilization capacity of 70%. The firm has constructed an additional expansion using a 30% loan and 70% retained earnings from funding. Furthermore, commercial production of the unit is expected to begin on or before March 31, 2024.
Looking into the company’s operational revenue fell by 7 percent, from Rs 183 crore in Q2FY23 to Rs 170 crore in Q2FY24. Net profit also fell by 16 percent, from Rs 19 crore to Rs 16 crore.
Mold-Tek Packaging is engaged in the manufacturing of injection-molded containers for lubes, paints, food, and other products.
The company’s volume growth has marginally increased by 5 percent in Q2 FY ’24 had a marginal growth and 3.4 percent in H1 FY ’24 a growth of 3.4 percent. In the September quarter company’s Lubricants business grew at 9%, followed by food, and FMCG at 15%, and square packs at 80% in volume terms.
The company has planned a Capex of Rs 120 crores planned for FY ’24. The company expects 7-10% annual growth in lubricants for the next 1-2 years.
Mold-Tek Packaging Ltd is India’s leading rigid plastic packaging manufacturing company with a 25% market share. The company is a Pioneer and master of IML Decoration.
Written by Omkar Chitnis
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