Mold-Tek Packaging Q2 Review - Strong Growth Momentum To Continue: Systematix

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Systematix Report

Mold-Tek Packaging Ltd.'s Q2 FY22 results were broadly in line with our estimates with sales/Ebitda/PAT growth of 34%/24%/31% YoY and 19%/27%/46% QoQ.

The revenue growth was led by paints (45% YoY) and food and FMCG - F&F segment (23% YoY). The overall volume grew 8% YoY driven by the paints volume (20% YoY).

The operating profit margin improved to 20.1% vs. 18.9% QoQ and Ebitda/kg stood at Rs 42.5 versus Rs 42.1 QoQ on account of operating leverage as Vizag and Mysore capacity utilisation was 90%+ and the in-house installation of the printing flexography machine that reduced outsourcing.

The management has guided for higher Ebitda/kg of Rs 40-42 versus Rs 36-38 earlier. Factoring Q2 FY22 results and improved guidance, we increase our FY22 earnings by 6% but keep our FY23 estimates unchanged. We estimate Ebitda/PAT CAGR of 23%/30% during FY21-23E led by

• strong demand and capacity addition in the paint segment

• new category (sweets box) and client additions in the F&F segment

• healthy order book in the lube segment

• strong traction in the newly incubated pumps division

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