This packaging stock engaged in providing innovative flexible packaging solutions globally and operating in packaging films, laminates, holography, chemicals, and allied machinery sectors, is in focus after investing Rs. 317 crore to establish two new recycling plants in Noida.
Stock Price Movement:
With a market capitalization of Rs. 3,340.86 crores, the share of Uflex Limited has reached an intraday high of Rs. 468.65 per equity share, up nearly around 0.90 percent from its previous day’s close price of Rs. 464.45. Since then, the stock has retreated and is currently trading at Rs. 462.10 per equity share.
What Happened:
UFlex is investing Rs. 317 crore in cutting-edge recycling technologies. The company plans to establish two new recycling plants at its Noida facility, with a combined capacity to process 39,600 metric tonnes of plastic waste annually.
These plants will specialize in producing recycled polyethylene (rPE) and recycled polyethylene terephthalate (rPET) materials, which are crucial for sustainable food packaging solutions, aligning with the company’s commitment to environmental sustainability.
UFlex currently operates recycling plants in India, Poland, Egypt, and Mexico, where it processes various types of waste, including post-consumer multi-layered mixed plastics, multi-layer aseptic packaging, and polyethylene terephthalate (PET) waste.
Expansion Projects:
The company is expanding its operations with several major projects. It has invested $50 million in WPP bags production in Mexico to cater to the North and South American markets.
In India, the aseptic facility has been expanded from 7 billion to 12 billion packs, and it has completed mechanical work, with commercial operations starting soon. Additionally, a 216,000 MTPA PET chips facility in Egypt has also reached mechanical completion, marking a significant milestone in its expansion plans.
Management Guidance:
The company expects a revenue growth of 12-15 percent for FY26 over FY25. For FY25, the EBITDA is projected at approximately Rs. 2,000 crores. Margins are anticipated to stabilize around 14 percent for FY26, with the possibility of improvement due to the implementation of new recycling regulations.
Recent quarter results:
Uflex Limited’s revenue has increased from Rs. 3,309 crore in Q3 FY24 to Rs. 3,735 crore in Q3 FY25, which has grown by 12.87 percent. The net profit of the company has turned negative into positive, from a net loss of Rs. 67 crore in Q3 FY24 to a net profit of Rs. 137 crore in Q3 FY25.
Written By – Nikhil Naik
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