Its a good one. Now people are recognizing it. I think it should re-rate from here and can go though all time high.
Has anyone of us analyzed the Sep quarter results of Mold Tek Packaging?
The scrip has been declining steadily post results
Unfortunately I have not been able to analyze them
Q2FY26 Concall Updates
• EBITDA Per Kg at 40.61 Vs 36.73 in H1FY26 Vs H1FY25.
General Business Updates
• Q2 and Q3is generally a low volume quarter. The company has handled the highest ever Q2 number of SKUs in this time – 3350. Very confident in Q4 to be good quarter as production start in Panipat and order execution has started for both pharma and FMCG.
• GST being announced in August, and effective in September there was lull in September and order started coming in after GST implementation.
• H1 3-4% improvement in realization - also depends on product mix. EBITDA increased due to pharma and Food/fmcg.
• Confident to maintain 40 per kg - Q3 will be similar to Q2 and Q4 will be similar to Q1.
• Realization for Food and FMCG below 300 (309 and now 300 in Quarter)
• Some competition - addition of few small players but being centralized in Hyderabad was disadvantage as freight cost and time to delivery would be higher. so small players have emerged, Pricing wise some drop but still much better than paints.
Outlook
• For Food and FMCG, Outlook is better as new location (Panipat) will add from Q3 onwards and new shapes are being introduced.
• Hopeful to achieve 10% volume growth in Paints. But growth is real coming from Qpacks and Food/FMCG containers.
• Volume growth is 6% while sales growth is 9% that is due to better mix change and realisation improvement from Food/fmcg/qpacks and pharma segment.
• Sweet packs have pickedup despite gst due to festive season.
• Food and FMCG growth will be sustained as panipat operations have come live.
Paints
• In Q1 decent growth, Q2 has been muted despite ABJ ramup - Last year same quarter was 21% growth in paints but this quarter is only 3% but pentup demand will be there and will go up from november/december.
• Slowdown in monsoon has also impacted the lubes segment.
• Grew 17% - 20% in value for BirlaOpus and rest of the people are infact flat or negative (in terms of modlteks sale to them)
• In overall paints - Asian paints continue to be more than 60% and 20-25% from Birla Opus - revenue contribution.
• Q2 - severe Rains and GST has impacted the capacity utilization thus affecting EBITDA to some extent.
Pharma Number
• INR 35 cr in FY26 is easily acheivable.
• INR 55-60 cr in FY27 for Pharma
• INR 90 cr pharma - is easily achievable in FY28
• EBITDA per Kg would be at least 100 per Kg being conservative.
• EV tubes, caps and bottles are major contributor for Pharma as of now. Cannister once it takes off, it will be highly profitable. Will take off in future quarters.
• Currently Pharma clients are more than 20-25 - Laurus and MSN - small commercial orders but have huge potential
• more than 40 to 50 varieties of bottles and 10 varieties of caps. - eyedrop- cough drop - currently candid bottle caps and EV tubes mainly and little bit from cannisters.
• In Pharma achieved over 50% capacity utilization. Further capacity expansion across product mix is planning by Q3 of 2026. Optimum Capacity Utilization - 75-80% crossing is good after which new capex.
• more than 60 visited, around 30 have approved and audited and 20-25 started buying - biggest client would be 10% max contribution otherwise this is essentially the widespread.
• New Customer - Bagged new order from Veedol Corporation, Devee Agencies, Rallis India Limited, Ava Cholayil Health Care, Sri Balaji Process etc. are from the food industry and Pharmaforce, are from the Pharma Industry.
Paints Business Update
• ABJ tonnes - 10K tonnes capacity and done 2900 tonnes in H1, thus will be around 60-65% utilisation for ABJ this year. - grew 24% YoY and in H1 86% QoQ.
• Ex of Grasim, Asian paints drop would be 2-3% or even flat.
• Other Paints is 4% growth and Akzo would be flat.
• Next Gen IML Introduced meaning - Brought in all operations under one roof in Sultanpur Hyderabad (printing) and their operations started in august or September so production cost can come down by some more percent - From 22Rs per KG cost will have 1RS per kg benefit
Guidance
• Aiming to do 12% volume growth in terms of tonnes.
• In terms of sales value aiming to hit 12%-15%.
• On lubes - bit skeptical - coming with more mileage per litre, so lubricant consumption now growing that much.
• Paints - confident that growth will come.
• IML - 75% and Non-IML - 25% In Volume terms
• In Value terms it would be IML = 77% And Non- IML = 23%
CAPEX
• Around 100 cr Capex vs. avg of 140 cr capex last 3 years. In this, Maintenance will be close to depreciation around = 40cr
• Acquired 2nd half acres land for pharma - greenfield and rest would be brownfield. - Capacity to increase from 1500 tones to 2500 tones - happens in progression and not in one shot. (15-20% can increase capacity every year)
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