Uflex share price Technical Analysis
Uflex share price (Uflex) looks strong in its technical chart with strong trading volume over the last 7 trading days. The trading volume of the script is above 100 DMA during this period. It seems the counter is ready to move up sharply. Uflex share price formed a flag pattern at the 780 level. Once the stock crossed above this flag it will start to move up again. Uflex share price is trading above all its short and long-term moving averages on the daily chart. The stock is also trading above its super trend signals and is in a bullish up move. Buy at this level or on Dip for a long-term gain.
Uflex share price is also looking strong in the weekly chart with strong volume over the last two weeks. On the daily chart, Uflex share price is forming higher highs for the last four trading days on 26 Aug. 22 and started forming a flag. This share looks strong for both short- and long-term investments at this level. Once the counter closes above 811, Uflex share price target will reach above 900 level. The stock has started its upward movement journey.
Momentum indicators ADX and MACD are looking bullish on the daily chart. One may buy at this level or on dips for a 10 to 20% gain in short term. Uflex’s share price is trading at 5.17 Price to Earnings (PE) and available at 0.85 price-to-book (PB) value while sector PE is 13.54 PE and 2.71 PB. The debt-to-equity ratio of the company is 0.68 in FY22. The counter seems cheap in comparison to its sector PE. The fundamentals of the company with a low debt-to-equity ratio make it attractive. It is a good stock to accumulate in correction.
Uflex share price Fundamental Analysis
Fundamentally, Uflex is a strong company. Uflex was founded in 1988. The company is a leading company in Packaging Industry in India and overseas. Uflex has large manufacturing capacities for packaging films and packaging products providing end-to-end solutions to clients across 150 countries. The company is India’s largest flexible packaging materials and Solutions Company and a leading global polymer sciences corporation. UFlex has 16 State-of-the-Art manufacturing facilities in 9 countries.
UFlex serves varied sectors spanning FMCG, Consumer Product Goods, Pharmaceuticals, Building Materials, Automobiles, etc. The company has also been manufacturing consumer-facing products like N-95 masks and sanitizers. Some of UFlex’s clients include P&G, PepsiCo, Coca-Cola, Nestle, Mondelez, L’Oreal, Britannia, Haldiram’s, Amul, Kimberly Clark, Reckitt, Dabur, ITC, Perfetti, GSK, Agrotech Foods, Mars Wrigley, Amcor, Mondi, UPM Raflatac amongst others.
According to the latest presentation, the company operates in three segments Packaging Films, Flexible Packaging, and Aseptic Packaging. The packaging films segment is the major revenue earner, contributing 60% of the total revenue.
Uflex Share Financial Analysis
Despite the challenges faced during the last few quarters due to the Covid situation, Uflex delivered strong operating revenue over the years. The company’s operating revenue has gone up by 20% from US $ 1007 million in FY 2020 to US$ 1210 million in FY 2021. During the last nine months of FY 2022, the company reported operating revenue of US$ 1245 million which is above the revenue of last financial year. The full-year revenue is expected to grow by over 20%. EBITDA margin has also gone up from 14.6% in FY 2020 to 20.3% in FY 2021.
Uflex is a mid-cap company with a market cap of INR 5608 crores with a face value of INR 10. Return on capital employed is ~16.5 percent while return on equity is ~18.4 percent. Promoters have increased their holdings from June 2021 to June 2022 from 44.02% to 44.58%. FIIs have also increased their holdings from 6.66 % in Mar 2022 to 7.09 % in June 2022. However, DII has decreased its holdings in the company from 0.32% in March 2022 to 0.18% in June 2022. This reflects that FIIs are confident about the company’s performance.
Company Promoters and Management
Uflex is run by strong leadership. Different segments of the company are run by different personalities. Anantshree Chaturvedi is the Vice Chairman and CEO, of FlexFilms International. Ashwani K. Sharma is the President & CEO of Aseptic Packaging Business. Jeevaraj Pillai is the Joint President, of Flexible Packaging and New Product Development.