Mold-Tek Pack. (MOLDTKPAC)

FairStock Score: 23/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• Return on equity of 10.98% and ROCE of 12.41% show reasonable capital efficiency.
• Debt-to-equity of 0.34 indicates a conservative balance sheet.
• Piotroski F-Score of 7/9 suggests solid financial health and no immediate red flags.
• Consistent positive sales and profit growth, albeit modest at 4.06% and 5.21%.
• Latest quarter shows profitable operations with sales of ₹198 Cr and net profit of ₹14 Cr.

Concerns

• P/E of 28.24 is expensive for a business growing sales just 4.06% and profit 5.21%.
• PEG ratio of 6.09 implies the valuation is far ahead of growth.
• FairStock Score of 11/100 labels the stock risky.
• Promoter holding of 33.07% is relatively low, limiting alignment with minority shareholders.

AI Analysis

When I look at Mold-Tek Pack, I see a business that is respectable but not wonderful. It earns about 11% on equity and 12.4% on capital employed—adequate, but hardly the kind of franchise that gives me a margin of safety. Sales grew only 4.06% and profit 5.21%. In packaging, where competition and input costs are real, single-digit growth at a P/E of 28.24 makes no sense to me. That implies expectations of a big acceleration, yet the PEG ratio of 6.09 tells me the market is paying a heavy price for very modest growth. Book value is ₹183.72, so at ₹602.10 I am paying 3.28 times net worth. The debt-to-equity ratio of 0.34 is manageable, and a Piotroski F-score of 7/9 suggests the financials aren't deteriorating, but the overall FairStock score of 11/100 waves a red flag. Promoter holding of 33.07% is also not the strong owner-operator signal I prefer; I want management's interests deeply aligned with mine. The dividend yield is just 0.69%, so I am not being paid to wait. The stock has fallen from its 52-week high of ₹870.50, but a lower price only matters if the intrinsic value supports it. It doesn't yet. The latest quarter's ₹198 Cr sales and ₹14 Cr profit reinforce the same picture—steady, not spectacular. In Graham's words, price is what you pay, value is what you get. Paying 28 times earnings for a slow grower is paying too much for too little. I would wait for either a much better price or clear evidence of accelerating growth and a wider moat.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer