Moldtek Technologies

Moldtek Technologies

Moldtek Technologies is a Engineering services firm, from the stable of Moldtek group.
Moldtek Technologies has 2 verticals Engineering & IT. Engineering is further subdivided into Civil & Mechanical divisions.


Company growth & profitability picking up in last 4-6 quarters and management commentary has been bullish.

IT Division :

IT division is quite small and company doesn’t expect to grow much in this space for time being. They are only servicing their current customers.

Civil-Structural engineering

Services :
Design-Detailing steel conventional & complex structures, construction and consultancy.

Most of their work is for US based clients and of late they have been winning work from US tier 1 companies. They had acquired 2 US steel detailing firms RMM Global & Crossroads detailing in past. They provide consultancy and help in acquiring new projects. Most of the work happens in Indian offices interms of designs, detailing.

Company has started executing projects (sub contracts) in big ticket projects recently like Denver Airport extension work, Amadzon CVG Hub at Kentucky, 75 storied Oceanwide center. Management expect steady growth in this vertical.

As per Annual report 2018/19 - “The Workflow in Structural Steel Division is moderate in the
first few months of the next FY 2019-20. However the Company is adding more new clients to increase the overall sales.”

MES - Mechanical Engineering Services

Services :

For OEMs, Process design for various BIW assemblies & sub-assemblies, designing, detailing, manufacturing of BIW Welding Fixtures; Robotic Simulation for Welding Robots & Guns for BIW , Design of grippers, weld gun arms and air-circuit design etc…

They have setup a GmbH in Frankfurt recently.

Management guidance for this vertical been bullish - They believe the MES division can ‘more than double the revenue in FY19-20’ and will be ‘Star Performer’.

Management :

Same management as that of Moldtek packaging and have a proven track record in good capital allocation.

Financials :

Market Cap - 150 Cr
CMP : 56
ROCE : 35%
ROE : 26%
PE : 12%
Interest coverage ratio : 46.82
Current Ratio : 3.79
Dividend Paying, zero debt. Debtor days improving over the last 3 years.

Revenue 5Year CAGR % - 17%
Revenue 3Year CAGR % - 19%

PAT 5Year CAGR % - 41%
PAT 3Year CAGR % - 38%

Revenue by Operations (from annual report):

Given the growth, performance & management quality, its rather surprising that this stock doesn’t have any institutional investors.

Opinion - If it continues to maintain this ROE & ROCE, its just a matter of time.


  1. Revenue from geography is not diversified. Domestic revenue are negligible to overseas generated revenue. If there is economy downturn in US or economy issues for OEMs in EU and new projects stalled or delayed may affect them.
  2. Since most revenue comes from international customers mostly US,the bottom line earnings is greatly influenced by currency fluctuations which could go either way.

References :
Annual report (2018/19) -

FY20 Q1 result & mgmt commentary -

Disc : Invested


Q2F20 Results :

Good performance YoY. Management commentary looks very promising

Disc : Invested.

Interesting developments submitted by Moldtek to the Exchanges today…


I am not understanding why a debt free company promoters keep diluting the equity?


Look at the Balance Sheet (Share Capital)

Mar 2008	Mar 2009	Mar 2010	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Sep 2019

Share Capital + 3.59 3.59 3.59 4.12 4.66 4.69 4.69 4.71 5.31 5.41 5.49 5.57 5.57

If there is any (Split, Bonus) for diluting share capital, Pls do let me know. The Company is small & I see almost every 2nd year share capital has changed & i feel that is not good for minority shareholder

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Company has been showing consistent growth but the problem going forward might be that it heavily depends on US and Europe where COVID has hit the hardest

Any opinion on proposed right issue/ fund raising?

They seem to have done a split in Feb 2016 (5 for 1). But most of the additions to share capital is because of ESOP being exercised.

There are still 375000 outstanding options granted yet to be exercised ay a rate of Rs. 35 per option.

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Mold Tek Technologies.pdf (480.0 KB)

Exploring the Unexplored!

Plan to keep sharing 1-pager research on interesting stock ideas (mostly focusing on small/mid-cap segment).

NOT as Buy/Sell ideas, but to - (1) Educate on companies, (2) get more perspectives (positive, negative or just new insights).

Starting it with Mold-Tek Technologies. If you like it and want to be notified of such posts, pls subscribe through the link below.

Discl - Invested


First time Mold Tek Technologies has come out with a presentation (they should also start doing investor calls soon). This is owned by the promoters of well known Mold-Tek Packaging Group. Interesting to see them focus on growing opportunities like EV body design, EV battery wire assembly design, etc.

Link to ppt -


Mold Tek Technologies - Detailed Company Research Note

Link to detailed ppt -


It was good to finally get some further insights on the EV related demand for MoldTek Technologies from Mr. Rao. I am also glad someone asked a question about growth guidance to Mr. Rao in the MoldTek Packaging concall, but he was kind enough to answer.

As per him, this seems to be the start of a strong period of growth, last year as it is has been great. But he is guiding for USD 23-24 Million from this years USD 18 million, so could be a 25-30% grower even from here on. The TAM is large for both end businesses and there should also be longevity of growth. I am attaching the relevant snapshot of the latest concall from MoldTek packaging below where they talk about MoldTek Technologies.

Disclosure : Invested since beginning of the year in self and family accounts and hence I am also biased. I am not a SEBI registered advisor and this is not investment advice.


The last pages (almost Annexure like) in the latest results had some good details about the company. Just attaching some relevant screenshots, it’s from the Q4 results PDF.

1. On the work coming in from EVs for the mechanical division

2. On future potential for both civil and mechanical divisions

3. Break up of last year growth between the 2 divisions + optimistic EBITDA margin guidance for next year

Disclosure : Invested in self and family accounts as a long term investment and hence I am biased. I am not a SEBI advisor and neither is this investment advice.


This company is under SEBI Graded Surveillance Measure 13. From what I understand, “Graded surveillance measure is a method to keep a tab on unrealistic price and demand rise of company stocks that don’t commensurate with the financial health and fundamentals of the company.”
If anyone else can shed more light on this it will be welcome. Aged learner

FURTHER reading shows this from the BSE website

Further, it may also be noted that the shortlisting of securities under ASM is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company.

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Mold-tek Tech works for highly valuable and standard company like that:
One design engineer who works in company writes these in his Linkdin profile.


Thanks to share the valuable insight , Lynch can you please help to locate where I can find the complete con-call pdf

There was no concall for Moldtek Technologies. Only a couple of questions were asked by an analyst on it in the latest Moldtek packaging concall - which is available in the investor section for that company.

Additionally, above snippets were from the latest results document of Moldtek Technologies, as a kind of appendix section with comments at the end.

Discl: Invested and biased