UFlex Ltd - a packed opportunity?

Management interview, the PPE business can bring topline of 200 cr. (if tender is approved) with margins of 20%. They also updated on the BOPET business

Very strong numbers from Uflex for the June 20 quarter

Reported Consolidated quarterly numbers for Uflex are:

Net Sales at Rs 1,992.68 crore in June 2020 up 0.73% from Rs. 1,978.27 crore in June 2019.

Quarterly Net Profit at Rs. 196.45 crore in June 2020 up 116.09% from Rs. 90.91 crore in June 2019.

EBITDA stands at Rs. 421.11 crore in June 2020 up 51.87% from Rs. 277.29 crore in June 2019.

Uflex EPS has increased to Rs. 27.21 in June 2020 from Rs. 12.56 in June 2019.

For more insights one can visit below link:

listened to their concall, spread seems to be at Rs 70 for Bopet and BOPP and should continue this quarter too and their EBITDA margin of 21% seems to be holding up this quarter too. so the Q2 results should also be good from q3 they are expecting to moderate back to 17-18%. they seem to be not concerned about the debt and since the interest coverage is quite good, they seem comfortable

heavily invested capex in russia, poland and nigeria, not sure when they are going to start revenue generation but they are confident of COD this year and adding to the P&L by Q4 this year

since they have capex outside india or dollar denominated debt, their overall interest rate is on the decline with current rate somewhere around 8 and will reduce to 6.7% by end of FY 21.

Tax rate is currently 23% and expected by year end at 18%

All plants seems to operating above 90% capacity utilization. some businesses have done well but others like hologram have not done that great due to low sales of alcohol products

recent CRISIL rating report says still their ASEPTO business has not yet stabilised which is surely a concern and they are not getting big clients and obviously they have invested huge capital in its sanand facility

end of Q2 or Q3 quarter CFO says the long term Debt/EBITDA will be 2 and subsequently it will be 1.5. can we consider then the EBITDA this year will be around 1500 crores as they have made 400 Crs EBITDA in Q1.

No further capex apart from the existing ones which are ongoing.

overall Q2 results are going to be good but in my view the big P/E rerating can come only when all these overseas companies start kicking in revenues and they start reducing the debt as well good growth in ASEPTO where the margins are good.


Good notes.

Company has also guided for a 50% increase in volumes by the end of FY22. One should always look at volumes and spread in these companies. Topline can vary due to movements in crude.

Just an addition. They were quiet assertive, for the first time, that Asepto doubling of capacity to 7b packs will definitely happen in FY22. The cost for that is not much. Only a printing line of 50-60 cr is needed, as all other infra is already there. Have to concede that this division has disappointed and taken much longer to ramp up. But it does seem to see the light at the end of the tunnel now.


The call recently with CNBCTV 18, CFO gave a clear view that Q3, Q4 is going to have similar type of results as it was in Q1 and Q2 due to various positive factors kicking in and both Russia and Poland started contributing. Even Fy22 is going to be extremely good. The spread of BOPP is better in Q3 than Q2 and slight reduction in BOPET spread but nothing substantial, and expecting Nigeria and Hungary to be commissioned by this FY. The liquid packaging is operating at a very good capacity with almost 325 Million packs sale, and they are sold out on the existing capacities and planning to expand by only next year with a very marginal capex for printing line.

CC: company presentation

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The finance and their performance looks so good, then why they have under performed? How come they have not participated in the rally? Am I missing anything?

Maybe management related concerns still prevail. Also Cosmo and Polyplex have given huge dividend but Uflex has not.


Latest update on Industry.


Uflex Ltd latest update .

Disclosure: Invested, this is not a recommendation to buy or sell

0707b427-ef4d-4d8b-a289-a9529e70165b (1).pdf (82.9 KB)

Uflex Ltd reported 35.83% higher total revenues for the Sep-21 quarter on consolidated basis at Rs3,027cr
Uflex Ltd Q2 PAT down yoy at Rs170.74cr as input costs and power cost spike hit profits


Is there any reason why this co continues to be quoted at low valuations? It has shown steady growth and profitability. Best names in the FMCG world are their clients and it has global presence

I think that the main reason would be because the company’s management team had issues in the past . This news article is from 2014


GST intel busts laundering racket involving UP firm

Co in question is Montage Enterprises a Noida based entity. Surprisingly you can find mention of this company in Uflex Annual report.
Read more at:


@Creative_Fin Nice find!!

Basically they were producing and selling packaging material without reporting it anywhere.
But wouldn’t a lot of other listed companies do such “black” sales? And Uflex indirectly is just the unlucky firm that got caught?
How do investors find out if a company is involved in such practices?

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Intersting disucssion in concall.

Also, are we you made a recent disclosure about FZE listing in global market? Can you can you
put some light on it?
Rajesh Bhatia :
I think what we are trying to do is we trying to, you know, list our holding company at the Dubai
level, at an either in US or European or, other relevant stock exchanges with capital there that
serves two purposes. One is you get your leverage improves substantially, which improves your
ratings, that gives you the capital for the further growth that you want to do in the business. And
on top of this, because the numbers that, you know, the guidance that we’ve been having from
our bankers our investment bankers in US, you know, the valuations are pretty much different
there. So that would also listing. Dubai will also help you to, you know, sort of re-value. UFlex
India level as well. That’s the whole objective.

Listing Uflex in a different exchange will have a rerating effect.
At least the management is focusing on improving the shareholders return now.

Although, Uflex is still not generating cash unlike other plastic firms like polyplex. Uflex’s receivables and inventory are ever increasing and the company runs net cash negative.

disc: not invested, had a tracking position earlier which i exited.

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