UFLEX Share Price

1. For the half-year ended on September 30, 2018, Uflex Limited reported its consolidated total income to be at Rs.3,933.1 crore, as against Rs.3,321.7 crore for the same period of the previous financial year. On a year-on-year basis, this translated into a growth of a little over 20%.
2. Considering the profitability of the company, the packaging giant reported its consolidated net profit after taxation for the six month period to be at Rs.190.4 crore, in comparison to Rs.188.4 crore reported for the same period last year. As a result, the company's basic earnings per share increased marginally YoY from Rs.25.94 to Rs.26.28.
3. However, considering the standalone performance of the company, its net profit dropped down from Rs.88.4 crore to Rs.45 crore YoY owing to a significant increase in the expenditure for the six-month period.
4. Coming to the assets and liabilities part, the consolidated total assets of the company are worth Rs.8,216.5 crore as on September 30, 2018. At the same time, Uflex Limited has high debt levels. Its long-term borrowings for the same period are worth Rs.1,031.8 crore.

Uflex Limited Stock Returns in 2018

1. At the start of January 2018, the share price of Uflex Limited was varying at levels close to Rs.480 on the National Stock Exchange. Over the course of the month, the shares lost a little over 10% to descended into the Rs.420 region, with the closing price on January 31 being Rs.421.55 on the NSE.
2. The scrip lost steadily in the month of February as well. This fall was largely driven by turbulence and massive sell-off in the international markets. By the end of the month, the shares had descend into the Rs.360 region, losing another 10% in February. The months of March and April brought some comfort to the shareholders. The Uflex stock price found stability at levels close to Rs.350 in these two months.
3. In the final week of April, the shares took another dive - this time, they moved on to shed as much as 20% over the course of May to reach the Rs.300 levels. Things worsened in early June when the stocks descended below the Rs.300 mark. The stocks continued to exhibit their downward trend as usual, with the closing price on June 29, 2018, being Rs.260 on the NSE.
4. Through most of July, the shares varied at levels close to Rs.250. A final dividend of 20% was also announced in the same month. This announcement was followed by a steady recovery in the scrip in the months of August and September. The stocks appreciated by close to 20% in this period to ascend back into the Rs.300 region. In fact, by mid-September, they had crossed the Rs.330 mark.
5. However, this rally didn't last for long. In the second half of September, the shares took a plunge and moved on to shed most of its recent gains in the following weeks. By late October, the shares were back in the Rs.260 region. While the scrip did recover marginally in the month of November to reach Rs.300 levels, the trend reversed once again and the stocks went down in the Rs.270 region.

Uflex Limited Stock Returns in 2016 and 2017

1. The Uflex Limited shares exhibited a highly bullish trend in 2016 and 2017. At the start of 2016, the scrip was varying at levels close to Rs.180 on the NSE. In the months of January and February, the stocks lost a little over 20% to descend into the Rs.140 region. However, in March, the shares recovered some of their losses to reach Rs.170 levels again.
2. This small, yet significant rise, marked the start of a bull run for the Uflex Limited shares. Through the months of April, May, and June, the stocks moved up in a gradual manner and gained as much as 30% to reach the Rs.230 levels by the end of the June quarter. In July, the packaging giant announced a final dividend of 32% by which point, the shares were being traded at levels close to Rs.250.
3. At the end of August, the stocks soared once again. Over the course of September and most of October, they gained close to 30% to ascend into the Rs.300 region. In fact, by mid-October, the Uflex Limited stock price was seen varying at levels close to Rs.315. However, things took a turn post demonetisation and the scrip ended up shedding most of its recent gains.
4. In what turned out to be an absolute disappointment for the shareholders, the Uflex counter witnessed a drop of 20% in the value in November, with the stocks hitting the Rs.250 mark once again. The scrip ended the year on an uneventful note at Rs.256.30 on the NSE.
5. 2017 started on a flat note for the investors. For the first three months of the year, the scrip stayed flat at levels close to Rs.270 - Rs.280 on the NSE. It wasn't until the end of March that the stocks started to go up.
6. The shares incurred a meteoric rise in April alone - they gained close to 20% to reach the Rs.350 levels by the end of the month. The stocks continued their upward trend in the months of May and June as well, with the scrip eventually reaching the Rs.380 mark at the end of June. In July, the company announced a final dividend of 35% by which time, the scrip was being traded at levels close to Rs.450.
7. After a small plunge in early August, the stocks continued to move up in the remainder of the month. By early October, the shares were once again back into the Rs.450 region and through most of November, the scrip stayed close to those levels. In December, the Uflex Limited share price reached its 52-week high at Rs.506.90 on the NSE. However, the stocks failed to find momentum at those levels and ended the year trading at Rs.486.75.

Should You Invest in Uflex Limited?

1. Uflex Limited is a leading player in the packaging industry in India. The company offers end-to-end packaging solutions to multiple industries for various products like beverages, frozen foods, noodles, cereals, rice, sea food, meat, dairy products, and many more. It has a presence in over 140 nations and caters to several, high-profile domestic and international clients.
2. For the half-year period ended on September 30, 2018, Uflex Limited reported its consolidated total income to be at Rs.3,933.1 crore, in comparison to Rs.3,321.7 crore for the corresponding period of the previous fiscal year. However, this growth in the income was negated by a fairly greater growth in the expenditure for the six-month period.
3. Consequently, for the H1 FY 2019, Uflex Limited reported its net profit after taxation to be at Rs.190.4 crore, in comparison to Rs.188.4 crore for the H1 FY 2018. Considering the company's consolidated assets, its total assets are worth Rs.8,216.5 crore as on September 30, 2018. Its debt-levels are also quite high, seeing that its non-current liabilities are worth Rs.1,223 crore.
4. Considering the performance of its scrip, the shares have been quite bearish in 2018. Over the course of the year, the shares have lost close to 40% driven by massive sell-off in the domestic markets. This, in turn, was triggered by weak global cues. Despite a decent performance by the company, the stocks fell from Rs.480 levels in January to Rs.270 levels in early December. However, over the course of 2016 and 2017, the shares were highly bullish, gaining as much as 150% in the two years.
5. From a long-term perspective, the scrip serves for an attractive buy. Its financials are decent and the company has a strong portfolio. However, its long-term debt is a factor that should be considered before investing in this company. Whatever may be the case, it is strongly recommended that you research the company thoroughly before investing.

Company Information

Uflex Limited is one of the largest packaging companies in India. It offers end-to-end packaging solutions across more than 140 nations. The company is headquartered in Noida and caters to clients in the U.S.A, Canada, South America, Russia, Europe, South Africa, Middle East, and the South Asian countries. Its manufacturing facilities hold ISO & HACCP accreditations and its products are approved by the U.S FDA. The company offers its packaging solutions for various products like snack foods, beverages, confectionary, sugar, cereals, dessert mixes, noodles, frozen food, cheese, and more. Some of its biggest clients are PepsiCo, P&G, Nestle, Coca Cola, Wrigley, Amul, and Britannia.

History of the Company

Uflex Limited was incorporated on June 21, 1988, and obtained the certificate for commencement of business later that year in August. It first acquired the assets and liabilities of Flex Laminates Limited and Flex Papers Limited. Then, in 1990, the company focussed on upgrading its technology to further improve the quality of its end products. This involved acquiring the latest equipment and machinery at the time. Later in that decade, the company forayed into the export segment and started its international operations on a strong note. To solidify its position in the international markets, the company subsequently entered into a joint venture with the U.S based Vinmar Inc. Over the years, Uflex Limited continued its operations and established its presence in the markets through strategic partnerships, acquisitions, and a high-quality product line.

Management of the Company

Mr. Ashok Chaturvedi - Chairman and Managing Director

Mr. Ashok Chaturvedi presently serves as the Chairman and Managing Director of Uflex Limited. He is the founder promoter of the Uflex Group. He has played an instrumental role in developing innovating packaging solutions for the company. In addition to his present responsibilities, he is also the Chairman and Managing Director of Uflex Limited at Flex Americas S. A. de C. V. and Flex Europe Private Limited. Mr. Chaturvedi is associated with other Uflex companies like Flex Engineering Limited, Uflex Packaging, Flex Securities Limited, Uflex Packaging Limited, and more. He has been a part of the packaging industry for more than 30 years and is well-versed with all the aspects of the industry. Mr. Chaturvedi obtained his Bachelor's degree in Science.

Mr. Amitava Ray - Whole-Time Director

Mr. Amitava Ray presently serves as the Whole-Time Director of Uflex Limited. Prior to this, he served as the President and Chief Executive Officer of Flexible Packaging Business from June 2001 until January 2016. Mr. Ray has also served as the Managing Director and Chief Executive Officer of India Foils Limited. In his capacity as the CEO and President of the Flexible Packaging Business at Uflex Limited, he improved the performance of the company in domestic and international markets while focussing on innovation and globalisation. He is an alumnus of Presidency College, Kolkata where he obtained his Bachelor's degree in Economics & Mathematics. He followed that degree with a PGDM from Kolkata University.

Mrs. Indu Liberhan - Independent Non-Executive Director

Mrs. Indu Liberhan presently serves as the Independent Non-Executive Director at Uflex Limited and she has held this position since May 2015. She is a part of the 1972 batch of the Indian Defence Accounts Service and over the years, she rose through the ranks within the government to be appointed as the Secretary of Defence (Finance), Ministry of Defence, Government of India. Mrs. Liberhan also served as the Additional Controller General Defence Accounts. She holds a postgraduate degree in English from Delhi University and later followed it with an M.Phil in Public Administration from the Indian Institute of Public Administration.

Uflex Limited Listings in NSE, BSE, and Stock Market Indices

The equity shares of Uflex Limited are available to the general public for trading. The shares are listed on the country's two prominent stock exchanges - the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective codes for the same are as follows:

1. NSE Code: UFLEXEQ
2. BSE Code: 500148
3. Sector: Packaging
4. ISIN: INE516A01017

Coming to the stock market indices, the company does not comprise the benchmark indices like the Sensex or Nifty 50. However, it does form other indices like:

1. Nifty 500
2. Nifty Smallcap 250
3. S&P BSE AllCap
4. S&P BSE MidSmallCap
5. Nifty MidSmallcap 400
6. S&P BSE SmallCap
7. S&P BSE Industrials
8. S&P BSE 500

Registered Office

Uflex Limited

#305, Third Floor,

Bhanot Corner, Pamposh Enclave

Greater Kailash - I

New Delhi - 110048

India

Contact number: +91-11-26440917

Stocks vs. Mutual Funds: here's what we recommend

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DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.