Stock Analysis

Analysts Are Updating Their Mold-Tek Packaging Limited (NSE:MOLDTKPAC) Estimates After Its Second-Quarter Results

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NSEI:MOLDTKPAC

Last week, you might have seen that Mold-Tek Packaging Limited (NSE:MOLDTKPAC) released its second-quarter result to the market. The early response was not positive, with shares down 7.6% to ₹702 in the past week. It was a credible result overall, with revenues of ₹1.9b and statutory earnings per share of ₹20.07 both in line with analyst estimates, showing that Mold-Tek Packaging is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Mold-Tek Packaging

NSEI:MOLDTKPAC Earnings and Revenue Growth November 10th 2024

Taking into account the latest results, the consensus forecast from Mold-Tek Packaging's ten analysts is for revenues of ₹7.96b in 2025. This reflects a meaningful 8.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 12% to ₹21.25. In the lead-up to this report, the analysts had been modelling revenues of ₹8.14b and earnings per share (EPS) of ₹23.07 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of ₹1,001, suggesting the downgrades are not expected to have a long-term impact on Mold-Tek Packaging's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Mold-Tek Packaging at ₹1,623 per share, while the most bearish prices it at ₹790. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's clear from the latest estimates that Mold-Tek Packaging's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mold-Tek Packaging. They also downgraded Mold-Tek Packaging's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mold-Tek Packaging going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Mold-Tek Packaging that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.