Accumulate Mold tek Packaging; target of Rs 345: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Double-digit volume growth expected in 2HFY27, driven by healthy demand in paints and F&F segments.
  • Improving product mix, with a rising volume share of F&F and pharma, supporting EBITDA/kg levels.
  • Sustained EBITDA/kg guidance of Rs45-46 despite RM volatility, with a long-term target of Rs50+.
  • Foray into high-margin businesses such as semiconductor packaging, supporting sustainable EBITDA/kg levels.

Thesis Validation Checklist

  • Observable signals to validate the thesis include double-digit volume growth in 2HFY27, improving product mix, and sustained EBITDA/kg levels.
  • Investors should watch for commercial production of IODEX containers from Q3FY27, new pack developments, and entry into trays, dosing pens, and semiconductor packaging.
  • Demand from Cheyyar and Panipat units, along with Hyderabad plant consolidation, is expected to drive medium-term capacity utilization.
  • Sales and EPS CAGR of 17.3%/28.8% over FY27-FY29 is estimated, with a target price of Rs345/share.