Mold-Tek Packaging came to my attention in March 2014 when I was shortlisting 8 stocks out of thousands of listed stocks…. The more I studied the fundamentals of the company, the more undervalued it looked to me…. and the more I studied the future prospects of the company, the more bright its future potential appeared to me….It was trading at 38 at that time….I became convinced that this stock deserves 10-15 times its current valuation based on its past performance and its future business potential….. And the stock really multiplied 19 times in next 4 years….Its current price of 350 is actually 700 because management announced split of 1:1 in 2015 ….. I bought this stock because of following positive point-

  • In 2014, E-commerce or online shopping was picking speed in India… It was very clear that Indians will switch from Brick and Mortar shopping to online shopping ┬ávery fast…. And all those thousands of crores of online packages will have to be packed in some form of packaging…. And Mold-Tek Packaging was in the business of Packaging…!!!… And it was coming with new form of Packaging ideas with better material in which it had almost monopoly at that time…. For example In-Mould Label (IML)….So it was clear to me that its profits are going to increase significantly in the coming years… or at least profits were not going to go down in any case… This was the most important factor in my picking this stock.

So, I could not understood why it is trading at so low valuation in spite of good performance and great future…. But as Warren Buffet says – ‘If business does good, stock eventually follows’….. So I was convinced that sooner or later it will reach its true potential….. After 2 months of my buying at 38, Dolly Khanna also bought a big stake in the company at 70…. And as on date of writing this article , it is trading above 700 effectively (taking 1:1 bonus into factor)

Happy Investing !!

 

Why I bought Mold-Tek Packaging and why it Multiplied 20 Times in 4 years?

3 thoughts on “Why I bought Mold-Tek Packaging and why it Multiplied 20 Times in 4 years?

  • January 19, 2017 at 11:16 am
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    I want to join your service

  • March 4, 2017 at 5:01 pm
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    The persons who are seeing your site are blessed by God and he is showing a way to create wealth by reading your articles of stock picking

  • March 8, 2017 at 7:01 am
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    Hi Manish Sir, I have never seen an investor who can suggest 10 to 20 times multibaggers with proofs.

    Very happy to see your posts.

    From the above post I have understood you are selecting under valued stocks which none of the investors care about. I have few doubts,

    You have specifically mentioned ROE was above 25%, PE is 5 ,Dividend Yield was 4-5% and etc… So what about other Ratios like Return On Assets, Debtors turn over ratio, Liquidity ratio and Interest Coverage Ratio …

    Can you please specify each with ratio values on it …

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