Broker Revenue Forecasts For Mold-Tek Packaging Limited (NSE:MOLDTKPAC) Are Surging Higher

Shareholders in Mold-Tek Packaging Limited (NSE:MOLDTKPAC) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Mold-Tek Packaging will make substantially more sales than they'd previously expected. Mold-Tek Packaging has also found favour with investors, with the stock up a remarkable 12% to ₹297 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the current consensus from Mold-Tek Packaging's four analysts is for revenues of ₹4.2b in 2021 which - if met - would reflect a credible 8.0% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing ₹3.6b of revenue in 2021. It looks like there's been a clear increase in optimism around Mold-Tek Packaging, given the decent improvement in revenue forecasts.

Check out our latest analysis for Mold-Tek Packaging

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Mold-Tek Packaging's revenue growth will slow down substantially, with revenues next year expected to grow 8.0%, compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mold-Tek Packaging.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Mold-Tek Packaging.

Looking to learn more? We have analyst estimates for Mold-Tek Packaging going out to 2023, and you can see them free on our platform here.

You can also see our analysis of Mold-Tek Packaging's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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