• Mold Tek Packaging (MTEP) reported stable operating performance in 3QFY20 despite muted demand environment. It reported revenue/EBITDA/PAT growth of 2%/11%/16% YoY respectively.
• The lower revenue growth due to fall in RM prices was offset by better EBITDA margin led by increasing traction in paints, and stable contribution from Food & FMCG (F&F) segment. The overall volume up 8% YoY,9MFY20 volume rose 13.8%.
• MTEP is at an inflection point from where multiple factors are likely to trigger growth. The revenue/PAT CAGR of 14%/23% respectively over FY19-FY22. The current valuation of 13x FY22E EPS is a discount of 40% to it's 5 year average of 18x.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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