Flex Industries - Trend Trading Technical Analysis

Traderji · #1 3rd September 2004, 02:06 PM

Flex Industries - Trend and Trading Technical Analysis

Quote:

Fundamental Analysis of Flex Industries

Flex industries, established in 1983, has risen to be the largest Flexible Packaging Company in India with an annual turnover of more than US$ 150 million. One of the leading companies in the Asia pacific region, Flex takes pride in its 25000 TPA strong converting capacity.

Today, Flex stands at the pinnacle as the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, BOPET and BOPP films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders, Gravure Printing, Lamination and Pouch formation.

Flex has also evolved capacities and capabilities to manufacture sophisticated machinery for converting and packaging applications. The Packaging Division of Flex, which revolutionised packaging in India, provides total solutions based on flexible packaging materials to customers across the world. The global markets, successfully catered to, include USA, Canada, UK, Russia, CIS countries, South Africa, the Middle East and the South Asian Countries.

Through a single minded approach to excellence in quality at Flex, its fraternity of satisfied clients is steadily growing. The company's partial client list includes the Godrej, Heinz, Henkel, ITC (BAT Subsidiary), Nestle, Pepsi, Perfetti, Smithkline-Beecham, Tata Chemicals, Tata Tea and Unilever Group.

The financial restructuring done by the company last year will substantially bring down the interest cost of the company in the years to come. The company has reported a turnover of Rs. 700 crore, PBDIT of Rs 142 crore, cash profit of Rs 119 crore, PBT of Rs 72 crore and a PAT of Rs 39.61 crore for the year ended March 2004, . The equity, which was Rs.39.03 crore, has increased to Rs.49.03 crore after allotment of shares to the promoters.

In the first quarter of the current financial year, the company has increased its sales by 34% to Rs 234 crore and Net Profit has declined by 2.72% to Rs.10.02 crore. The company should achieve sales of Rs. 900 crores and net profit of Rs.50 crores in this financial year translating into an EPS of Rs. 10. The stock quoting currently at a P/E of less than 3.7 appears cheap given its industry leader status and global scale of operations.

Flex Industries - Trend and Trading Technical Analysis

Flex seems to have started a new intermediate uptrend on BIG volumes.

BUY immediately or on a pullback to 39.00-41.00 levels.

See attached chart for trading signal, profit targets and stoploss levels.

andy · #2 3rd September 2004, 08:56 PM

Flex Industries closed down -2.01 at 41.40

43.4% of the traded volume were delivery based. Is this accumulation?

Neal · #3 4th September 2004, 04:35 PM

Quote:

Originally Posted by andy

Flex Industries closed down -2.01 at 41.40

43.4% of the traded volume were delivery based. Is this accumulation?

YES, It looks like its time to BUY!

amc · #4 5th September 2004, 01:39 PM

Good Call Traderji,

Looks like a Multi bagger to me!!

Mohan · #5 8th September 2004, 11:31 AM

Excellent Call Traderji,

Flex Industries is up by over 8.5% on good volumes and is currently trading at 48.00

Keep up the excellent work.

PS: I hope most memebers are taking advantage of your free services!!

SHASHIKANT M. HIREMATH · #6 10th September 2004, 07:37 AM

Quote:

Originally Posted by Traderji

Flex Industries - Trend and Trading Technical Analysis

Flex Industries - Trend and Trading Technical Analysis

Flex seems to have started a new intermediate uptrend on BIG volumes.

BUY immediately or on a pullback to 39.00-41.00 levels.

See attached chart for trading signal, profit targets and stoploss levels.

SHASHIKANT M. HIREMATH · #7 10th September 2004, 07:40 AM

Department of Company Affairs appointed Investigator to probe the charges against the Flex Industries. Is anybody aware about the outcome of this investigation?

Traderji · #8 10th September 2004, 07:50 AM

Quote:

Originally Posted by SHASHIKANT M. HIREMATH

Department of Company Affairs appointed Investigator to probe the charges against the Flex Industries. Is anybody aware about the outcome of this investigation?

If I am not mistaken this was some time in May 2002!

Can anyone else throw more light on this with details, news snippets, etc.

SHASHIKANT M. HIREMATH · #9 21st September 2004, 09:07 PM

Quote:

Originally Posted by Traderji

If I am not mistaken this was some time in May 2002!

Can anyone else throw more light on this with details, news snippets, etc.

SHASHIKANT M. HIREMATH · #10 21st September 2004, 09:18 PM

Dear Traderji,
Independent Investigator was appointed by the Dept. of Company Affairs in Dec.2003. The investigation may be mainly in connection with bribery case. Since the Delhi High Court discharged in the bribery case there would no substance now in the matter of investigation. The fundamentals of Flex Ind. deserve for mid cap long term investment.

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