Rs 2/Share Dividend At Face Value of Rs 5: Friday, 12th April Fixed As Record Date; Bet?

As of Thursday's closing session, Mold-Tek Packaging Limited, a small-cap company in the capital goods category, has a market capitalization of Rs 2,806.35 Cr. India's leading provider of rigid plastic packaging is Mold-Tek Packaging Limited (MTPL), which was founded in 1986. Producing injection-molded food, paint, lubricant, and other product containers is the business of Mold-Tek Packaging Limited. Based in Hyderabad, India, the company is an ISO 9001-2015 certified business that produces premium plastic packaging products. It is the top manufacturer of rigid plastic packaging in India, with a 25% market share. On Thursday, the shares of Mold-Tek Packaging closed 1.10% higher at Rs 844.55 apiece after the company declared an interim dividend for FY24.

Mold-Tek Packaging Dividend

"This is to inform you that the Board of Directors ("Board") of the Company at its meeting held today i.e. 3rd April, 2024, have, inter-alia, declared an Interim Equity Dividend for the Financial Year 2023-24 @ 40% i.e. Rs 2.00/- per equity share on face value of Rs 5.00/- per equity share," said Mold-Tek Packaging in a regulatory filing.

"The Company envisages a significant overall capex during ensuing financial year(s) for notable growth and expansions, specially in Food & FMCG and Pharma Packaging and thus has declared an Interim Equity Dividend for the Financial Year 2023-24 @ 40% i.e. Rs 2.00/- per equity share on face value of Rs 5.00/- per equity share to strike an optimum balance between shareholder' interest and preserve retained earnings of the Company to fund anticipated growth. As intimated vide our letter dated 29th March, 2024, the record date for reckoning the list of equity shareholders who will be entitled to receive the said interim equity dividend shall be Friday, 12th April, 2024. The interim dividend will be paid to such shareholders on or before Thursday, 2nd May, 2024," said the company in a stock exchange filing.

Mold-Tek Packaging News

"During the financial year 2022-23 and 2023-24 the Company had actualized significant growth plans by focusing on high-value products through both product & geographical expansion, improving the product range and venturing into new segments like - restaurants, sweets, cashews, fertilizers, seeds etc. Further, the Company introduced New Pails for DEF market (Diesel Exhaust Fluid), diversified into the new domain of Pharma Packaging and has set- up world class plant at Sultanpur for Pharma Packaging and Food & FMCG. Company has also set-up plants at Panipat and Cheyyar to cater to the packaging requirement of M/s. Grasim Industries (Aditya Birla Group-Paints Division) and another plant is coming up at Mahad. Thus, in total there was an overall approximate capex of Rs 280 Crores during F.Y-23 & F.Y-24," said the Board of Directors of Mold-Tek Packaging in a regulatory filing on 03rd April, 2024.

Mold-Tek Packaging Share Price Target

"Mold-Tek Packaging Limited is a leading rigid plastic packaging company in India that manufactures injection molded containers for lubes, paints, food & FMCG, and other products, building a presence in key sectors. Judging by the company's current fundamentals, the stock appears to be a lucrative investment avenue to generate gains. At present, the stock is available within a moderate buying range, making it further attractive for investors. In this regard, I recommend buying the stock in the 830 to 855 range, with a target of Rs.885-1150 for seven months. However, to protect gains investors must set a strict stop loss at Rs.790 and follow it," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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