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October 5, 2014

3

Mold-Tek Packaging – Multibagger Analysis

by Futurecaps Advisor

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.

image

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

Screener URL: http://www.screener.in/company/?q=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.

image_thumb1

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.

Read more from Multibaggers
3 Comments Post a comment
  1. Bhavin Mehta
    Oct 6 2014

    What is your view on Mold-Tech Technologies?
    Same promoters, and in KPO/BPO business.

    Reply
    • Oct 8 2014

      Seems good Bhavin. Need a thorough analysis shortly.

      Reply
  2. Nov 11 2014

    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 ?

    Reply

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