Moldtech is into Infra Eng services business. Most of their clientele is from USA and Eu. Currently due to high interest rates, the business is going through headwinds. However I consider this a good opportunity to buy. Few things that may work in favor of the business
- Reduction of interest rates in US in near future
- Acquistion is expected sooner than later. The acquisition will help the co. move up the value chain and enter into the high margin business of design
- Inherent low cost humanforce advantage of the co, as it serves clientele in developed countried from India
- Corporate governance is good (same management as Moldtech packaging)
- Mechanical Engineering Services is expected to contribute to the growth whereas historically most of the revenues came from Civil Eng Services
These are the few qualitative thesis points, I have in mind. For management guidance on growth of Revenue and Profit, you can refer to the recent concalls
Disc: No reco to buy or sell
Praveen
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