Hold Recommendation on Mold Tek Packaging with a Target Price of Rs 662: Prabhudas Lilladher
Moldtek Packaging: Prabhudas Lilladher Raises Estimates
Prabhudas Lilladher has revised its estimates for Moldtek Packaging (MTEP) upwards, driven by several key factors. The research firm has raised its FY27 and FY28 estimates by 1.4% and 1.9%, respectively. This upward revision is attributed to a sharp rise in raw material (RM) costs, a healthy near-term demand outlook with double-digit volume and EBITDA growth guidance, improving capacity utilization, and strong demand momentum in the pharma and FMCG sectors.
MTEP's recent numbers have exceeded Prabhudas Lilladher's estimates, likely due to channel stocking ahead of a price hike implemented in mid-April. The company's EBITDA per kilogram came in at Rs41.9, surpassing estimates of Rs39.3 in 3Q26 and Rs40.3 in 4Q25.
The long-term drivers for MTEP remain intact, with the company poised for growth in several key areas. Rising business from leading paint and FMCG companies, coupled with improving utilization and scale-up in the pharma business, are key contributors to MTEP's growth prospects. Additionally, capacity expansion at Cheyyar and Panipat, along with increasing demand from ABG, is expected to drive capacity utilization from FY27 onwards.
Outlook
Prabhudas Lilladher estimates a sales Compound Annual Growth Rate (CAGR) of 16% and earnings per share (EPS) CAGR of 29.4% over the period of FY26 to FY28. The research firm assigns a price-to-earnings (PE) multiple of 18x on March 28, 2028 EPS, valuing the company at Rs662 per share, up from its earlier estimate of Rs650 per share. Prabhudas Lilladher retains its recommendation of 'Accumulate' for Moldtek Packaging.
| FY26 | FY27 | FY28 |
|---|---|---|
| Sales CAGR | - | 16% |
| EPS CAGR | - | 29.4% |
| PE Multiple | - | - |
| Estimated Value (Rs) | - | - |
Note: The table above presents a comparison of Moldtek Packaging's estimated sales CAGR, EPS CAGR, PE multiple, and estimated value over the period of FY26 to FY28. The values are based on Prabhudas Lilladher's estimates and are presented in a clear and concise manner.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should consider holding Mold Tek Packaging with a target price of Rs 662.
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