Mold-Tek Packaging – Multibagger Analysis

Mold-Tek Packaging Limited (MTPL) leader in rigid plastic packaging in India, was incorporated in the year 1985.

Mold-Tek Packaging Limited is involved in the manufacturing of injection molded containers for lubes, paints food, FMCG and other products. Mold-Tek Packaging Limited is the leader in rigid plastic Packaging in India with 20% market share.

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Company URL: http://www.moldtekplastics.com/

Screener URL: http://www.screener.in/company/533080

CMP: 200.00

Fundamental Analysis: Link 1

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage Have good market share image
Future Growth Drivers Looks good. image
Conservative Debt (long term debt < 3 Net Profit) Not. image
Debt Equity Ratio, Current Ratio 1.25 (High) image
Return on Equity must be Above Average 18 (Good) image
Low CAPEX required to maintain current operations Moderate. image
Management is holding / buying the stock 42% holding. (Increasing-Decreasing change over 3 years) image
Price is Under Valued (< intrinsic value) Yes. image
Stock Price is consolidating (now) Price is at Peak. image
Stock Price is growing in past years along with EPS growth Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PE 14 (High), PB 4 (High) image
Cash Flow Positive, Net Profit % greater than 8% Yes.  Not. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 40% in recent past; Flat before that. image
Jump in Trailing Result EPS Yes. image
Jump in Quarterly Result EPS Yes. image
Expected Gain in 5 Years Considering 10-30% growth in EPS, we can see 10-12X growth in 5 years. image
Price Movement Graph, 52 Week High & Low 200/30 image
Volume Analysis 30k (Moderate) image
Power of Brand Yes. image
Corporate Governance, Reputation of Leaders Yes. image
Fraud reported Not image

Declaration

Considering the value-parameters above & good growth expectation of upcoming 2 years, we declare Mold-Tek Packaging as a Multibagger.

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Allocation

2-3% of your portfolio.

Note

As the company already peaked 100% in 2 months, we prefer to buy on declines.

Disclaimer

Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

3 thoughts on “Mold-Tek Packaging – Multibagger Analysis

Add yours

  1. Found this blog today . Superb in-depth analysis of value small caps which are presented in a structured way. Thanks. I am adding Mold tek from 100 levels . Now it seems consolidating around 220 after the results . Can we add now ? or wait for further correction ?

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