Uflex Limited

Consumer Cyclical — Packaging & Containers · NSE

₹621.90+₹9.55 (+1.56%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Uflex Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Uflex Limited manufactures and sells flexible packaging materials and solutions in Indiaand internationally. It operates through Flexible Packaging Activities, Engineering Activities, and Others segments.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees7,772

Annual revenue₹15,064 Cr

How does it make money?

Turns over ₹15,064 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 7,772 employees supports ₹1.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.94 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved -37% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+4%

Margin effect-37%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.4% — barely ahead of inflation
✗ Profit has declined at 12.9% a year

Quality vs. Valuation

Company Quality

34/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

6.6x

3Y Median

9.1x

40 monthly readings · mean 13.3x · range 6.1x–27.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 9.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 90% below the peer median of 69.2x.

vs. its own history

Cheap

9.1x median over 40 months · -28%

vs. sector peers

Cheap

69.2x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 11.3% to 12.9% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 78% over 3 years, from ₹5,704 Cr to ₹10,152 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Profit is decliningFinancial
Net profit is down 34% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.3% to 12.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 90% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 1.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1,057 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 1.4% CAGR
Latest reported year was 35.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹4,491 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.6x

Cheap

Cheap against the generic band

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹94.51

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

7.5%

Weak

Low return on total capital employed

Debt/Equity

1.25x

Moderate

Moderate leverage

Revenue Growth (YoY)

35.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

630.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.48%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1,057 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

11.0x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

13.0%

Average

Average margins

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

1.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.71

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

642.1 / 622.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

32.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,458 Cr	₹13,189 Cr	₹14,845 Cr	₹15,064 Cr	+1.4%
EBITDA	₹1,632 Cr	₹1,505 Cr	₹1,812 Cr	₹1,947 Cr	+6.1%
EBITDA Margin	11.3%	11.4%	12.2%	12.9%	—
PAT (Net Profit)	₹481 Cr	-₹691 Cr	₹142 Cr	₹317 Cr	-12.9%
EPS	₹66.57	₹-95.69	₹19.71	₹43.91	-13.0%
ROE	6.4%	-9.6%	1.9%	3.9%	—
ROCE	9.3%	-0.6%	6.8%	7.5%	—
Total Debt	₹5,704 Cr	₹6,947 Cr	₹8,353 Cr	₹10,152 Cr	+21.2%
Free Cash Flow	₹84 Cr	-₹812 Cr	-₹596 Cr	-₹1,057 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.4% a year).

🟢 EBITDA has grown at 6.1% a year over 3 years.

🟢 EBITDA Margin has risen from 11.3% to 12.9% over 3 years (+1.6 pts).

🔴 PAT (Net Profit) has shrunk at 12.9% a year over 3 years.

🔴 EPS has shrunk at 13.0% a year over 3 years.

🔴 ROE has fallen from 6.4% to 3.9% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 9.3% to 7.5% over 3 years (-1.8 pts).

🔴 Total Debt has grown at 21.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹84 Cr to -₹1,057 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22,171 Cr

Total Liabilities

₹14,049 Cr

Cash & Equivalents

₹984 Cr

Operating Cash Flow

₹992 Cr

Capex

-₹2,049 Cr

Shareholding (proxy)

Institutional Holding

1.4%

Insider Holding

82.1%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

25 Jun 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive2 mixed2 general

Uflex Ltd. Share Price and Sector Comparison After High

Univest, 27 Aug

UFlex Shares Surge 17% After 630% Profit Jump — But Can These Margins Last?

NiftyTrader, 17 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Uflex shares surge 16% after Q1 profit zooms 630% YoY

The Economic Times, 17 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Here's Why We Think Uflex (NSE:UFLEX) Is Well Worth Watching

Simply Wall Street, 18 Aug

Earnings call transcript: Uflex Q1 2026 profit surges, shares jump 20%

Investing.com, 17 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

UFlex spurts as Q1 PAT zooms 630% YoY

Business Standard, 17 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality

WeakFinancial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 4 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑