Smallcap EV Firm Returned 124% In 5 Months, Stock Price Recorded New High!

Indian benchmark indices have recovered smartly from the lower levels with Nifty trading above 18,300 mark. Amidst recovery from the lower levels, there are some stocks which have hit fresh record high on the bourses and one such stock is Mold-Tek Technologies Ltd.  

Mold-Tek Technologies is engaged in providing Civil & Mechanical Engineering Services. The stock has rallied nearly 3% in the final trading session of the week and it marked a fresh all-time high of Rs 324 during the day. The stock has witnessed a spectacular run in the last five months as it is up by 124% during the same period.  

Recently, this Mold-Tek Group company posted excellent financial results for the Quarter and Year ended March 31, 2023. In Q4FY23, the company reported a revenue of Rs 43 crore up by 48.4% YoY. Net profit of the company more than doubled to Rs 10 crore in Q4FY23 as compared to Q4FY22.  

Mr. J Lakshmana Rao, CMD commented that “Company has shown phenomenal performance with EBIDTA margins around 30% and PAT margins around 20%, thanks to the better performance of both Civil and Mechanical divisions and strong turnaround in Mechanical Engineering Services Division performance.” 

Both divisions of the company i.e. Civil and Mechanical have given stellar performance in Q4 resulting in jump in revenues and impressive increase in profitability. Company’s focus on the Electric Vehicles domain and its association with the Tier 1 and 2 clients has contributed to the Mechanical division growth in the last few quarters. The rush for introducing new Electric Vehicle (EV) Models by many automobile companies is expected to increase MES performance for the next few years.

Company has increased capacity both in-house and also through sub-contract for executing a greater number of orders. They are receiving from clients in Europe and Mexico. Sharp rise in demand and better capacity utilization in the Mechanical Engineering Division led to rapid growth in EBIDTA in FY 2022-23, from Rs 22.73 crore to Rs 44.18 crore, a rise of 94.37%. The EBIDTA Margin grew sharply from 23% to 30% in FY 2022-23. With increased flow of projects in the Mechanical Engineering Division right from Q1 of FY 2023-24, this EBIDTA margin may further improve during the FY 2023-24 subject to market conditions. 

Company is also in the lookout for acquisitions in the field of Connection Design, Architectural Services, Structural designing engineering and Mechanical engineering to expand its operations in the USA. With good work on hand in Civil and Mechanical divisions and improved efficiencies, the company hopes to perform well in the coming quarters.