The stock belongs to the small-cap category with a market capitalization of ₹2,587 crore. On March 15, company shares closed at ₹777 apiece, up 0.09 percent from the previous close price on the stock exchange.
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.
Mold-Tek Packaging has a molding capacity of approximately 50,000 tonnes per year. Mold-Tek Packaging Ltd. stands as a trailblazer and innovator in pail packaging within India.
The company introduced pioneering concepts like spouts and In-Mold spout technology for paint and lube pails. Serving a wide spectrum of clients from diverse sectors, including renowned names such as Amul, Asian Paints, Berger Paints, Unilever, Dairy Day, Milky Mist, Parle, Pepsi, MTR, ITC Ltd, Hatsun Agro, P&G, and numerous others, MTPL is at the forefront of delivering quality packaging solutions.
The organisation 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.
On January 3rd, 2024, the company inaugurated its new manufacturing facility in Panipat, Haryana, with an investment of ₹35 crore. This newly constructed unit, contributing an additional capacity of 2,500 MTA, supplements the company’s existing capabilities.
Looking ahead to the fiscal year ’24 to ’25, the company has allocated a capital expenditure (capex) plan ranging from ₹50 crore to ₹60 crore for expanding its capacity. Anticipating a 7-10% annual growth in lubricants over the next 1-2 years, the company remains poised for further development in this sector.
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.
Furthermore, the company saw a marginal 5 percent growth in volume in Q2 FY ’24 and a 3.4 percent growth in H1 FY ’24. Notably, in the September quarter, the lubricants business exhibited a growth of 9%, while the food and FMCG segments showed a 15% increase and square packs demonstrated substantial growth at 80% in terms of volume.
Written by Omkar Chitnis
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