Uflex

Posted on August 28, 2022

Q3 FY 22 – Bumper quarter with PAT 313Cr refer to uflex website for presentation/transcripts film types: BOPP, BOPET, flexible packaging prods Biz – flexible packaging, chemical biz, packaging, engineering, holography biz Biscuit packs to hot chai packs printing on cement bags to bhujia covers kids toys material to gift wrappers -> Co working on Recycleable plastic (post consumption recycling) to reduce production of virgin plastic. plant in mexico and MLP plant at poland -> plants across the globe. (PCR plants at nigeria) -> Capex has come alive this quarter and processed over 15.4K MT PCR. -> Strong sticky partnerships with other biz Biz has good long term loans to be paid EV/EBITA – 3X (MCap – 6.5K Cr) Peer: Polyplex,cosmo,garware,srf,jindal,naharpoly,huhtamaki Customers: P&G, PepsiCo, Mondelez, Nestle, Britannia, Haldiram’s, Amul, GSK, Coca-Cola, Mars Wrigley, Amcor, ITC Fanastic Q1 FY23 – Rev & PAT up by 45% yoy & 10%+ QOQ. Aseptic liquid volumes jumps 123% yoy *Dharwad facility soon to be commissioned

• While the co has performed well over the years, long term Debt levels are increasing resulting in good % outflow under finance cost section in P&L. No discussion about debt reduction
• We should check for Sales volume, Net revenue from operations, Net profit, Finance cost YOY to take a decision.
• Packaging industry as a whole has a very good potential.
• Peers include:
  • Polyplex – multi national, fully integrated, D-PAC
  • SRF – along with chemicals, Packaging films is the second biggest revenue stream (new plant Indore commissioned in Aug 2022)
  • Cosmo Films/First
  • Garware films