Uflex shares zoom 20% today to hit upper price band; see tech charts

Shares of packaging major Uflex Ltd rose sharply in Wednesday's trading session. The stock soared 20 per cent to hit its upper circuit of Rs 463.10. Around 3.42 lakh shares changed hands today on BSE. The figure was way more than the two-week average volume of 20,000 shares. Turnover on the counter came at Rs 15.22 crore, commanding a market capitalisation (m-cap) of Rs 3,337.61 crore. There were 18,800 buy orders against sell orders of nil shares.

The company has recently appointed Rashmi Verma as an independent and non-executive director for a three-year period.

The packaging firm has posted a consolidated loss after tax of Rs 416 crore in the first quarter ended June 30, 2023 (Q1 FY24), impacted by a change in the Forex Policy of the Central Bank of Nigeria. It had recorded a consolidated profit after tax of Rs 375 crore in the year-ago period.

Uflex said it recorded an exceptional loss of Rs 382 crore due to change in the forex policy of the Central Bank of Nigeria in Q1 FY24 which impacted its bottomline.

Consolidated revenue during the quarter under review stood at Rs 3,278 crore, down 19 per cent from the year-ago period, it added.

UFlex chairman and managing director Ashok Chaturvedi said, "Globally, the packaging films business is facing headwinds due to high inflation in the US and European regions."

In India, Chaturvedi said the company has seen an uptick in demand, and our new CPP, BOPET lines in Dharwad, Karnataka are operational, which resulted in 22 per cent YoY increase in sales volume in the quarter.

UFlex Group CFO Rajesh Bhatia said the company's continued focus on exports has resulted in 56 per cent year-on-year (YoY) increase in exports from India.

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100- and 150-day simple moving averages (SMAs) but lower than the 200-day SMA. The counter's 14-day relative strength index (RSI) came at 72.91. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 12.47 against a price-to-book (P/B) value of 1.01.

Uflex has a one-year beta of 0.85, indicating low volatility on the counter.

Uflex is a holding company engaged in the manufacturing and sale of flexible packaging products. The company’s segments include flexible packaging activities and engineering activities. It also offers a flexible packaging solution to its customers across the globe.

 

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