phne no


5:40-42 - "If a man wants to sue you for your coat, let him have it and your overcoat as well. If anybody forces you to go a mile with him, do more - go two miles with him. Give to the man who asks anything from you, and don't turn away from the man who wants to borrow."

24 Jun 2018


                        UFLEX LIMITED.
About Uflex, Uflex is India's largest multinational flexible packaging materials and Solution Company and an emerging global player. Since its inception back in 1985, Uflex has grown from strength to strength to evolve as a truly Indian Multinational with consumers spread across the world. Uflex today has state-of-the-art packaging facilities at multiple locations in India with installed capacity of around 100,000 TPA and has packaging film manufacturing facilities in India, UAE, Mexico Egypt, Poland and USA with cumulative installed capacity in excess of 337,000 TPA. All Uflex plants are accredited with ISO 9001, 14001, HACCP & BRC certifications. Uflex caters to markets spanning across the globe in over 140 countries like USA, Canada, South American countries, UK and other European Countries, Russia, South Africa, CIS, Asian and African nations. Integrated within its core business profile are allied businesses like Engineering, Cylinders, Holography and Chemicals which further give Uflex a superior edge above competition. Uflex Limited is also a part of the D&B Global Database and winner of various prestigious national and international awards for its products' excellence. Uflex offers technologically superior packaging solutions for a wide variety of products such as snack foods, candy and confectionery, sugar, rice & other cereals, beverages, tea & coffee, dessert mixes, noodles, wheat flour, soaps and detergents, shampoos & conditioners, vegetable oil, spices, marinades & pastes, cheese & dairy products, frozen food, sea food, meat, anti-fog, pet food, pharmaceuticals, contraceptives, garden fertilizers and plant nutrients, motor oil and lubricants, automotive and engineering components etc. Some of Uflex's clients on the global turf include P&G, PepsiCo; Tata Global; Mondelez, L' Oreal, Britannia, Haldiram's, Amul, Kimberly Clark, Ferro Rocher, Perfetti, GSK, Nestle, Agrotech Foods, Coca Cola, Wrigley, Johnson & Johnson among others.
Why I would bet on Uflex for the long term: 1. It`s the largest flexible packaging company in India. It has a global FMCG clientele. This itself makes it a brand in itself. 2. Uflex is targeting a turnover of USD
2 billion in the next 5 years. Currently at USD 1 billion, this target means a target growth @ ~15% CAGR for the next 5 years. Even if it grows @ ~3-4% after FY2023, the Intrinsic Value of the stock will be over Rs. 1000. (I computed Intrinsic Value by considering `owner earnings` ie Net Profit Depreciation - Capex) 3. Today, Uflex is trading very cheap. It`s available at a discount to its consolidated book value. (This stock has taken a beating in the past to its promotor history, but I feel this is a thing of the past. Today the stock is affected more due to the overall negative sentiment towards small caps) 4. In the recent earnings call, they said that they have finished incurring major capex. (Their Sanand plant is complete). Please consult with your analyst and take decision.

wish you good luck.

No comments:

Post a Comment