1. At a Glance
Mold-Tek Packaging (MTP) just dropped its Q1 FY26 results: Revenue ₹241 Cr (+22% YoY), Net Profit ₹22 Cr (+32% YoY), OPM steady at 19%. The stock at ₹769 trades at a premium P/E of 39 – because the market loves a packaging story with consistent margins.
2. Introduction
Imagine a company making buckets and tubs for paints, lubes, and food – and the market values it like a tech startup. That’s Mold-Tek. While other packaging companies struggle with commodity pricing, Mold-Tek thrives with value-added IML (In-Mold Labeling) magic.
3. Business Model (WTF Do They Even Do?)
MTP manufactures rigid plastic packaging (think high-quality tubs, not your ₹5 polythene bag) used by FMCG, paints, and food industries. Their USP? In-Mold Labeling tech, which integrates labels into the molding process – making products look premium while locking clients into long-term contracts.
4. Financials Overview
- Q1 FY26 Revenue: ₹241 Cr
- EBITDA: ₹47 Cr (19% margin)
- Net Profit: ₹22 Cr (EPS ₹6.74)
- 12M PAT: ₹66 Cr
Verdict: Steady numbers, healthy margins, and no drama.
5. Valuation – What’s This Stock Worth?
- Current P/E: 38.8x
- Fair Value (P/E 30x): ₹600–₹650
- EV/EBITDA Range: ₹700–₹780
The market’s giving it a premium for niche tech, but any slip in growth and this PE melts faster than plastic in the sun.
6. What-If Scenarios
- Bull Case: Pharma division + new units ramp up → ₹900+.
- Bear Case: Raw material spikes & demand slowdown → ₹550.
- Base Case: ₹700–₹800, because margins are sticky like melted resin.
7. What’s Cooking (SWOT Analysis)
Strengths: IML leadership, diversified clients, steady OPM.
Weakness: Low promoter holding (33%), moderate ROE.
Opportunities: Pharma packaging expansion, FMCG growth.
Threats: Raw material volatility, global packaging competition.
8. Balance Sheet 💰
| Particulars (Mar’25) | Amount (₹ Cr) |
|---|---|
| Equity Capital | 17 |
| Reserves | 621 |
| Borrowings | 176 |
| Total Liabilities | 937 |
| Total Assets | 937 |
| Commentary: Debt levels up for expansion, but still manageable. |
9. Cash Flow (FY14–FY25)
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) |
|---|---|---|---|
| FY23 | 152 | -141 | -10 |
| FY24 | 79 | -143 | 59 |
| FY25 | 110 | -136 | 25 |
| Cash generation strong, capex heavy (expansions in Cheyyar, Panipat, and pharma division). |
10. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 9.8% |
| ROCE | 12.4% |
| D/E | 0.28 |
| PAT Margin | 18.5% |
| P/E | 38.8 |
| Punchline: Valuation is hotter than the injection molding machines. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 730 | 136 | 80 |
| FY24 | 699 | 133 | 67 |
| FY25 | 781 | 142 | 61 |
| Growth slowed in FY25, but Q1 FY26 hints at a revival. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| EPL Ltd | 4,213 | 362 | 19 |
| TCPL Pack | 1,696 | 141 | 23 |
| AGI Greenpac | 2,650 | 348 | 18 |
| Mold-Tek | 825 | 66 | 39 |
| The only packaging stock where the PE is more inflated than the product. |
13. EduInvesting Verdict™
Mold-Tek is a niche player with sticky clients, tech differentiation, and steady margins. Valuation is rich, but so is the growth potential with pharma and FMCG tailwinds. A high-quality play – just don’t expect it to double overnight.
Written by EduInvesting Team | 28 July 2025
Tags: Mold-Tek Packaging, Q1 FY26 Results, Pharma Packaging Expansion, EduInvesting Premium
