Ashish Kacholia stock: This packaging company's shares hit new lifetime high on Monday; brokerages recommend Buy - check price target

Ashish Kacholia-backed packaging company stock – Mold-Tek Packaging touched a lifetime high of Rs 910 per share and closed almost 10 per cent to Rs Rs 903.4 per share on the BSE on Monday on the back of heavy volumes and a positive business outlook.

Brokerages are bullish on Mold-Tek Packaging stock as they see more upside in the scrip up to 13 per cent. Mold-Tek Packaging is the leader in rigid plastic packaging in India and manufactures injection molded containers for lubes, paints, food and other products.  

Ace investor Ashish Kacholia has 6,24,340 equity shares or about 1.9 per cent stakes in Mold-Tek Packaging, as per the June shareholding pattern of the company available on the BSE.

The investor had slashed nearly 1.2 per cent stakes in the company during June 2022 quarter.

Ashish Kacholia, who is fondly called as the Big Whale of the Indian stock market, publicly holds 38 stocks with a net worth of over Rs 1,807.0 crore as of July 09, 2022, according to a stock analysis website trendlyne.com.

Mold-Tek Packaging reported strong Q1FY23 numbers, a seasonally strong quarter for the company. However, it witnessed a marginal decline in gross margins on account of pass-through lag although it is expected to gain from falling raw material prices in coming quarters, Axis Securities said in its report.

The company has benefitted from the increasing demand of DEF, a type of Lube used in Diesel based engines & strong pickup in Food & FMCG demand, also it has achieved the highest ever sales and production level of 9040/9150 tones in a quarter, the brokerage said further in its report.

Given the outlook, Axis Securities revised FY23/FY24 estimates upwards and maintained a Buy rating with a target price of Rs 1021/share (13% upside) valuing the company at ~25x PE its FY24E.

Mold-Tek’s share price has grown by around 3x over the past five years from Rs 280 in July 2017 to Rs 822 per share levels in July 2022, said ICICI Direct Research, maintaining a Hold rating on the stock with a target price of Rs 935 per share and value the stock at 30x P/E on FY24E EPS.

Capacity addition, new launches, and increasing wallet share from existing clients are expected to drive revenue, the brokerage said, adding that the company’s balance sheet to remain healthy with low debt, high RoCE, RoEs.