Uflex in the limelight

Three days ago, Uflex hit a new high at Rs.188.90 and today, when it hit an intra day high of Rs.186.50 and one wondered if the stock would make another new high today. But looks like it might not, at least going by the current price, which is around Rs.183.

The stock is up on news that the company plans to set up a new plant in Sanand in Gujarat as a part of its expansion plans. It plans to invest Rs.550 crore in the first phase. This unit will be making packaging material for liquid products and is expected to go on stream by April 2017. It will have a capacity to make around 70 crore packs per year for products like energy drinks, milk and juices; 90% of the output will be for catering to the domestic market.

The company declared its Q1FY16 numbers two days ago wherein it announced a 19% (YoY) rise in consolidated net profit at Rs.76 crore on a 5% rise in total income at Rs.1601 crore. The company has said that the increase in profitability was on account of increased demand for innovative solutions.