MOLD-TEK TECHNOLOGIES-
A MNC COMPANY
(NSE CODE: MOLDTECH,
BSE Code: 526263) (CMP:
Rs.52)
Mold-Tek Technologies
Limited (MTTL) is a leading Engineering Services provider in India. Headquartered
in Hyderabad, MTTL specializes in providing IT, Civil, Structural and Mechanical
Engineering services to its clients located across the globe. It has a strong
team of world class resources with a variety of skill sets and is complemented
by two subsidiaries in USA- CrossRoads Detailing Inc., Avon, IN & RMM
Global Inc., Akron, OH. Mold-Tek serves over 200 clients in varied verticals
across North America, Europe, Asia Pacific and Middle East. It has consistently
helped clients cut down design and development costs of Civil, Structural,
Mechanical and Plant design engineering projects by 30-40% and delivered
technologically superior output to match and exceed expectations.
Mold-Tek has an
in-house software development team, quality control training and troubleshooting
facilities. Mold-Tek is the only listed, most well established company in the country
providing civil engineering services. It is the fastest growing mechanical
engineering services provider in the field, with core expertise in Automotive,
Poles & Towers and Oil & Gas domains. Leaving no stone unturned,
Mold-Tek has entered the most potential cloud services business and is reaping
benefits in the EU and US markets. It is one of the two silver partners of Sales
force in South India and the only SKUID partner for the entire EU and Asia.
With such an edge over other outsourcing firms, Mold-Tek's IT division has seen
more than 100 clients, in just 2 years.
Investment Rationale
" Key
beneficiary of uptick in the US Mold-tek Technologies Limited (Mold-tek
Technologies)
derives key earnings through it's core services from clients
based out of the US. The US markets is showing
decent traction in key verticals like civil/structural, MES(Manufacturing
Execution Systems) and IT services and this
augurs well for Mold-tek Technologies.
" The growth in
the US economy is reflected in increasing demand for the company's services in
civil/structural and MES domains. During the year, the company has entered the
latest segment of civil/architectural engineering services - BIM (Building
Information Modelling) which is widely being used in all major residential/commercial/
industrial structures. The company has received 'silver partnership' status
from salesforce.com, the leading cloud computing company in the world.
" Impressive
performance expected to continue in future as well. The financial improvement in
numbers continued in FY'17-18 as well. We expect that with demand set to
improve for the company's services in civil/structural and MES domains, along
with high growth coming from the Building Information Modelling segment, the
growth momentum is expected to continue in future as well. Various expansion
plans in place The company's Nasik branch is well established and a 200 per
cent expansion is being taken up there to enhance overall capacity.
" The
PEMB(Pre-engineered Metals Building) sector which had been lagging over the
last five years is showing signs of improvement, auguring well for the
company's revenues. The recent entry into the latest segment of Building
Information Modeling and growth the cloud computing segment should contribute
in a big way over the coming years.
" Clean Balance
Sheet Mold-tek Technologies has a clean Balance Sheet and has significant asset
value in the books recorded at historical book value. Decent dividend payment
track record. The Company has a decent dividend payment track record. On the
back of expected improvement in performance coupled with a strong Balance
Sheet, the dividend figure (on the back of better earnings) can be even higher
going forward Performance.
Future
Outlook According To Management
The company has
opened a new branch in Chennai, Tamil Nadu recently to further enhance its
capacity in Civil Engineering Services. The branches opened in Vijayawada and
Pune are performing well and will be growing further in next quaters.
In Mechanical
Engineering Services apart from Automobiles, company is adding clients in other
domains including Telecom, Railways and Industrial Automation. Company is also
discussing with other Structural Engineering Services in North America for
possible accusitions/ Joint Ventures to enhance the operation.
Financial Snapshot
Company has delivered awesome results in Q4FY17 Sales up 55.73% / PAT up 99.72% / EBIDTA up 75.49% compared to Q4 FY16.
Result Update of Q1FY18
Company has delivered
awesome results in Q1FY18 with 12.68% higher PAT at Rs.1.51crore
on 26.22% higher income of Rs.17.52crore fetching an EPS of Rs.0.56. PAT on QoQ
basis surged 113.26%.
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Thank You for details analysis of Mold Tek Technology.
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