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Mold-Tek Packaging Ltd.’s Q2 FY23 result was below our and consensus estimates on key parameters as earnings were impacted due to semiconductor shortage in automated machines (printing lines, robotics) which led to loss in productivity impacting sales and higher maintenance cost.
On a positive note, despite 3-4% loss in net sales, the company managed to maintain Ebitda/kilogram at Rs 41. Net sales increased by 14.4% YoY to Rs 1,826 million, while Ebitda came in at Rs 341 million, marginally higher by 6.4% YoY.
Mold-Tek Packaging reported net profit of Rs 194 million, higher by 10.4% over Q2 FY22.
We have broadly maintained our earnings estimates, however, given the robust capacity addition, new products launches and Ebitda/kg improvement; we believe the stock is poised for valuation re-rating.
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