Earnings Beat: Mold-Tek Packaging Limited (NSE:MOLDTKPAC) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts
Shareholders of Mold-Tek Packaging Limited (NSE:MOLDTKPAC) will be pleased this week, given that the stock price is up 13% to ₹330 following its latest quarterly results. It was a workmanlike result, with revenues of ₹2.7b coming in 2.6% ahead of expectations, and statutory earnings per share of ₹10.97, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Mold-Tek Packaging's nine analysts is for revenues of ₹11.5b in 2027. This reflects a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 16% to ₹14.27. In the lead-up to this report, the analysts had been modelling revenues of ₹10.8b and earnings per share (EPS) of ₹13.54 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
View our latest analysis for Mold-Tek Packaging
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹412, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Mold-Tek Packaging at ₹533 per share, while the most bearish prices it at ₹365. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mold-Tek Packaging's past performance and to peers in the same industry. The analysts are definitely expecting Mold-Tek Packaging's growth to accelerate, with the forecast 28% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Mold-Tek Packaging is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mold-Tek Packaging's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹412, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Mold-Tek Packaging analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Mold-Tek Packaging has 1 warning sign we think you should be aware of.
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