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.
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, 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 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.
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