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SHARETIPSINFO >>Research Reports >>UFLEX LIMITED (28-04-2009)
LISTING |
|
|
Rs 68 |
|
Rs 175/Rs 50 |
|
Rs 10 |
PE RATIO |
6.03 |
VOLUME |
12344 |
MARKETCAP |
Rs 361 crore |
P/BV |
0.6 |
DIV % |
40% |
DIV YIELD |
5.71% |
COMPANY OVERVIEW:
UFLEX Limited earlier known as FLEX Industries was established 21st June 1988. The company is engaged in manufacturing and dealing in flexible packaging materials of printed laminated of plastic and paper based material. It was promoted by Ashok Chaturvedi and Harish Chaturvedi.
Uflex has manufacturing facilities in India and Dubai.UAE, offices in Europe and North America and market presence in 80 countries around the world.
Subsidiary:
FLEX Middle East FZE.
FLEX America Inc.
Product and Capacity:
BOPET:
BOPET is biaxially Oriented Polyethylene Terapthalate Films. The capacity is over 60000 metric tons per annum. The product is sold under the brand name ‘FLEXPET’.
BOPP:
BOPP is biaxially Oriented Polypropylene film. The annual production capacity is in excess of 35000 metric tons. The product is sold under the brand name of ‘FLEXOPP’.
METALLIZER:
METALLIZER have the capacity of 20000 metric tons per annum. The product is sold under the brand name of ‘FLEX MET PROTECT’.
CPP FILM LINE:
CPP is cast Polypropylene film. The annual capacity is over 6000 metric tons. The product is marketed under the brand name of ‘FLEXCPP’.
INVESTMENT RATIONAL:
Packaging industry is growing at rate of 14-15% per annum.
Increasing urbanization will see more demand for packaged thing.
Increase health consciousness will increase the demand for will packaged goods.
Low purchasing power will increase the demand for small packet.
Increase in rural demand will increase the demand for sachet.
The company is showing good increase in operating efficiency.
During the recessionary time company managed to increase the sales and profitability.
CONCERN:
The Company is situated in state which is not perceived to be conducive to business. Politics drives thing more than the economics.
SHAREHOLDING PATTERN:
|
|
NO. OF SHARES |
% OF TOTAL |
PROMOTER |
27872267 |
|
42.88% |
|
INSTITUTION |
1988022 |
|
3.06% |
|
GENERAL PUBLIC |
35146357 |
|
54.06% |
|
GRAND TOTAL |
65006646 |
|
100.00% |
|
FINANCIAL:
|
|
31/03/05 |
31/03/06 |
31/03/07 |
31/03/08 |
TOTAL INCOME |
1111.93 |
1117.82 |
1436.07 |
1416.5 |
EXPENDITURE |
-981.14 |
-987.1 |
-1243.37 |
-1195.67 |
OPERATING PROFIT |
130.79 |
130.72 |
192.7 |
220.83 |
DEPRECIATION |
-56.16 |
-59.15 |
-75.74 |
-71.55 |
PBIT |
|
74.63 |
71.57 |
116.96 |
149.28 |
INTEREST |
|
-22.68 |
-27.39 |
-46.33 |
-75.71 |
PBT |
|
51.95 |
44.18 |
70.63 |
73.57 |
TAX |
|
-22.17 |
-10.68 |
-26.03 |
-11.26 |
PAT |
|
29.78 |
33.5 |
44.6 |
62.31 |
CHANGE IN TOTAL INCOME: CAGR IN TOTAL INCOME IS 8.48%
CHANGE IN OPERATING INCOME: CAGR IN OPERATING INCOME IS 19.07%
CHANGE IN NET PROFIT: CAGR IN NET PROFIT IS 27.9%
RATIOS:
|
|
31/03/05 |
31/03/06 |
31/03/07 |
31/03/08 |
|
EPS |
4.581538 |
5.153846 |
6.861538 |
9.586154 |
|
OPM |
11.76243 |
11.69419 |
13.41857 |
15.58983 |
|
NPM |
2.678226 |
2.996905 |
3.105698 |
4.39887 |
INTEREST COVER |
3.290564 |
2.612997 |
2.524498 |
1.971734 |
Key Highlights:
EPS increased over the period of 3 years from Rs4.5 in FY2005 to Rs9.5 in FY2008.
OPM increased from 11.76% in FY2005 to 15.5% in FY2008.
NPM Up from 2.67 % in FY2005 to 4.39% in FY2008.
Interest cover declined during the same period from 3.29 to 1.97.
COMPARISION OF Q3FY2009 WITH Q3FY2008:
|
|
31/12/07 |
%CHANGE |
31/03/08 |
TOTAL INCOME |
351.35 |
12.30% |
|
394.54 |
EXPENDITURE |
-297.11 |
|
|
-318.58 |
OPERATING INCOME |
54.24 |
40% |
|
75.96 |
DEPRECIATION |
-19.17 |
|
|
-21.87 |
PBIT |
|
35.07 |
|
|
54.09 |
INTEREST |
|
-17.25 |
|
|
-26.22 |
PBT |
|
17.82 |
|
|
27.87 |
TAX |
|
-5.55 |
|
|
-8.18 |
PAT |
|
12.27 |
60.50% |
|
19.69 |
Key Highlights:
Total Income increased by 12.3%.
Operating surged by 40%.
Net profit up by 60.5%.
VALUATION:
At cmp of Rs 68 stock is trading 6.03X to trailing twelve month earning. The industry average of packaging industry is 9X. So we value the company at 9X,the fair valuation come at around Rs99 per share. We are optimistic about the company as company has grown even in the time of recession. The current market price it is available at below book value is other good thing about the script.
The stock also provide good dividend yield of 5.7% at CMP.
CONCLUSION:
Investor should start accumulating at every dip with a time horizon of 6 to 8 month. The down side is limited on the counter.
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