Industrial Products
Uflex Limited manufactures and sells flexible packaging materials and solutions in India, the United States, Canada, Egypt, Europe, and internationally. The company operates through Flexible Packaging Activities, Engineering Activities, and Others. Its Packaging Films division offers bi-axially oriented polyethylene terephthalate (BOPET) films; bi-axially oriented polypropylene (BOPP) films; cast polypropylene (CPP) films; metallized films; special effects films; and Alox coated films. The company's Chemical division offers primers, water-based flexo and gravure inks, radiation-curable inks, solvent based inks, topcoats, heat seal coatings, barrier coatings for PE replacements, water-based blister coatings, Energy curable coatings, UV coatings, solvent-based matt and gloss coatings, UV LED coatings, and other products, as well as solvent-based, solvent-free and water-based laminating adhesives. Its Aseptic Liquid Packaging division offers packaging materials, filling machines, and flexible packaging solutions. The company's Holography division provides holograms, holographic films, textile value addition products, hot stamping foils, holographic metalized papers and board transfers, and labeling solutions. Its Flexible Packaging division provides flexible laminates, pre-formed pouches, flexo printed rolls and bags, laminated woven poly propylene bags, electron beam and cast n cure packaging products, packing products for pharmaceuticals, flexitubes, hygiene films, modified atmosphere packaging products, shower proof bags, and injection moulding products, as well as N-95 masks. The company's Printing Cylinders division offers gravure cylinders, flexo plates, and flexo printing sleeves. Its Engineering division provides packaging and converting machines, as well as specialty products. It exports its products to the United States, Europe, the Asia Pacific, the Middle East, Africa, and internationally. Uflex Limited was founded in 1983 and is based in Noida, India.
Summary of Uflex's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook:
UFlex anticipates robust growth in FY26 driven by new facilities (Aseptic expansion, PET chips in Egypt, WPP bags in Mexico) contributing Rs.2,200"“2,500 crore annually at full utilization. Margins are expected to improve with higher capacity utilization (Nigeria/Mexico plants targeting 100%), stable forex (Nigeria), and value-added products. EBITDA margins are projected to stabilize around 14% in FY26, supported by operational efficiency and recycling initiatives. Debt management remains a focus, with net debt-to-EBITDA at 3.24x, expected to be offset by earnings growth and amortization.
Key Points:
Expansions:
Capacity Utilization:
Margins & Demand:
Industry Dynamics:
Regulatory Impact:
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Last updated: Feb 25
Question: What were the reasons for the dip in capacity utilization in Egypt and Poland plants, and what is the utilization guidance for FY26?
Answer: Poland faced lower demand due to competition from Indian exports to Europe, with utilization dropping to 61% in Q3 FY25. FY26 guidance targets ~80% utilization. Egypt had temporary technical/maintenance issues but is expected to stabilize at 90%+ utilization in FY26.
Question: How will the debottlenecking of Aseptic Packaging capacity be ramped up, and what are the FY26 volume targets?
Answer: The expanded Aseptic capacity (7B → 12B packs) is mechanically complete. FY26 targets 10.5B"“11B packs annually, with Q4 FY25 benefiting from incremental volumes as commissioning progresses.
Question: What are the growth and margin expectations for the new WPP bags plant in Mexico?
Answer: The $50M plant targets ~22"“25% EBITDA margins, serving U.S. pet food brands. Ramp-up may take ~2 years due to customer validation. Revenue is projected to match the investment size ($50M) at full utilization.
Question: How will potential U.S. tariffs on Mexican exports impact operations?
Answer: If tariffs materialize, alternatives like duty parity with other exporters or job-work models may mitigate risks. Current optimism exists due to Mexico-U.S. negotiations on border security, potentially averting tariffs.
Question: What is the industry's current overcapacity status in BOPP/BOPET, and what new capacities are expected?
Answer: BOPET overcapacity is easing through exports and domestic demand. BOPP faces 12K"“13K tons/month new capacity from mid-FY26, likely causing short-term pricing pressure before stabilization.
Question: How will Q3's performance trend in Q4 and FY26?
Answer: Q4 will benefit from peak Aseptic demand and partial contributions from Egypt's PET facility. FY26 revenue is guided to grow 12"“15% with incremental EBITDA from new projects (Aseptic, PET chips, WPP bags).
Question: What is the debt-to-EBITDA outlook for FY26/27?
Answer: Debt-to-EBITDA (3.24x in Q3 FY25) may rise temporarily due to Rs.1,700Cr capex but will stabilize via amortization (~Rs.1,000Cr/year) and EBITDA growth.
Question: How will India's recycled plastics mandate (30% rigid, 10% flexible from April 2025) affect margins?
Answer: Recycling investments (Rs.317Cr) position UFlex to supply blended materials, improving margins due to limited industry readiness. Margins may rise as demand for recycled content grows.
Question: What is the revenue/margin contribution from liquor packaging mandates in UP/Uttarakhand?
Answer: Tetra-pack adoption for liquor could require 4"“5x current industry capacity if expanded nationally. UFlex dominates this niche, with incremental demand likely outpacing supply.
Question: How will value-added films and engineering businesses drive growth?
Answer: Engineering (machines/cylinders) and high-margin holography focus will offset low-growth flexible packaging. Value-added films in Hungary/Egypt are prioritized post-commoditization of base films.
Question: Why are PAT margins low (~2-3%), and will this improve?
Answer: High interest/depreciation from debt-funded expansions suppress PAT. Margin improvement hinges on EBITDA growth and reduced leverage over time.
Question: What is the renewable energy adoption plan?
Answer: 70"“80% renewable power usage is targeted across plants in 2 years, with Gujarat's Dharwad already operational. UP's policies are being navigated for Noida.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Balance Sheet: Reasonably good balance sheet.
No major cons observed.
Comprehensive comparison against sector averages
UFLEX metrics compared to Industrial
Category | UFLEX | Industrial |
---|---|---|
PE | -13.44 | 22.34 |
PS | 0.27 | 0.80 |
Growth | 10.4 % | 9.1 % |
UFLEX vs Industrial (2021 - 2025)
Understand Uflex ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Vistra Itcl (india) Limited | 13.46% |
Flex International Pvt Ltd | 13.3% |
Anshika Investments Pvt Ltd | 7.99% |
Kebale Trading Limited | 7.57% |
A.R.Leasing Pvt Ltd | 6.92% |
Apoorva Extrusion Pvt Ltd | 5.99% |
Anshika Consultants Pvt Ltd | 5.23% |
Keswani Haresh | 4.33% |
Ricky Ishwardas Kirpalani | 3.49% |
Black Rhino Holdings Limited | 3.19% |
First Water Fund | 2.71% |
Ashok Kumar Chaturvedi (Karta) | 2.35% |
Ritesh Mukesh Punjabi | 1.9% |
Anant Overseas Pvt Ltd | 1.38% |
Ashok Chaturvedi | 0.7% |
A.L. Consultants Private Limited | 0.49% |
Rashmi Chaturvedi | 0.17% |
Magic Consultants Private Limited | 0.06% |
Other | 0.03% |
Anant Shree Chaturvedi | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Uflex's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Flexible Packaging Activities | 96.9% | 3.6 kCr |
Engineering Activities | 3.1% | 116.2 Cr |
Total | 3.8 kCr |
Valuation | |
---|---|
Market Cap | 4.06 kCr |
Price/Earnings (Trailing) | -13.67 |
Price/Sales (Trailing) | 0.27 |
EV/EBITDA | 3.55 |
Price/Free Cashflow | -5.2 |
MarketCap/EBT | -22.52 |
Fundamentals | |
---|---|
Revenue (TTM) | 14.81 kCr |
Rev. Growth (Yr) | 12.82% |
Rev. Growth (Qtr) | -2.05% |
Earnings (TTM) | -297.15 Cr |
Earnings Growth (Yr) | 303.54% |
Earnings Growth (Qtr) | 311.73% |
Profitability | |
---|---|
Operating Margin | 3.09% |
EBT Margin | -1.22% |
Return on Equity | -4.18% |
Return on Assets | -1.62% |
Free Cashflow Yield | -19.22% |
Detailed comparison of Uflex against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
TCPLPACK | TCPL PackagingPackaging | 3.28 kCr | 1.76 kCr | -21.14% | +73.58% | 24.45 | 1.86 | +14.09% | +38.89% |
HUHTAMAKI | HUHTAMAKI INDIAPackaging | 1.48 kCr | 2.55 kCr | +8.76% | -36.17% | 16.87 | 0.58 | -0.39% | -78.53% |
Investor Care | |
---|---|
Dividend Yield | 0.22% |
Dividend/Share (TTM) | 1 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | -41.15 |
Financial Health | |
---|---|
Current Ratio | 1.36 |
Debt/Equity | 0.98 |
Debt/Cashflow | 0.12 |