I was thinking that this question may come up. I have given a thought to it. There is a fundamental difference between auto ancillary companies and Mold-Tek packaging. This difference you can see from their operating margin. In case of best company in auto ancillary, Uno Minda, still the operating margin is still around 10-11 while in case of Mold-Tek, its around 20. Mold-Tek may have influence of few paint companies from customer point of view , but they dont have supplier side constraints. And even from customer side ,they are trying to get free from clutches of paint companies , as u said by diversifying into FMCG and Pharma, and these new segments are at very high margins. Also if you look at competitive intensity, when u go into auto ancillary sector on screener, you get 108 just listed companies organised , and then you have thousands of unorganised , pvt.ltd companies. In case of Mold-Tek, they have some niche and nobody else has that, they are exploiting that. Recent example is that of Bar code packaging. So i have come to the conclusion that Mold-Tek is a good proxy for FMCG sector companies. Instead of Mota Haati like FMCG companies, Mold-Tek will be better to bet on for multibagger returns.
But offcourse , I would appreciate differing opinions to put holes in my narrative.
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