Mold Tek Packaging rises for second day; has added over 22% in the past one year

Mold Tek Packaging rose 1.79% to Rs 869.25, extending gains for second consecutive session.

The stock has added 2.49% in two sessions, from its recent closing low of Rs 848.10 recorded on 16 November 2022.

On the technical front, the stock's daily RSI (relative strength index) stood at 43.791. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock is trading below its 50-day and 100-day simple moving average (SMA) placed at 914 and 872.36, respectively. It has, however, managed to trade above its 200-day SMA placed at 799.31.

In the past one year, the stock has risen by 22.59% while the benchmark Sensex has advanced 3.11% during the same period.

In an exchange filing made yesterday, Mold Tek Packaging said that it has received a letter of award (LoA) from Grasim Industries - Birla Paints Division, for supply of packing material (PAILS) and accordingly, a co-located facility will be set-up by the company at Cheyyar near Chennai to cater to their demands.

The new facility is expected to be set up and operational by January 2024 and shall call for an investment of approximately Rs 30 crore.

The company also propose to set up Food and FMCG IML container manufacturing facilities in Cheyyar, to capture demand for these products and also service clients for PAILS in Southern India.

Moldtek Packaging is involved in manufacturing injection moulded decorative packaging containers, mainly pails (cylindrical containers) for paint, lube, food and other products. The company has manufacturing facilities at multiple locations in India.

The company's consolidated net profit zoomed 87.16% to Rs 6.85 crore on a 48.29% increase in sales to Rs 34.73 crore in Q2 FY23 over Q2 FY22.

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