Flex Foods Ltd (FFL) is a part of Uflex Group involved in the business of packaging, information technology, communication, municipal solid waste & real estate with a total turnover of Rs 218.84 Billions (Dollar 474.19 Millions).
The Company is engaged in the business of agro based value added food products catering to the international markets mainly in Europe, USA, Canada & Middle East countries. The company started its commercial operations in 1992 by establishing an 100% EOU for vacuum freeze dried vegetables mainly mushroom and culinary herbs with a total processing capacity of 2000 MTs per annum. The Registered Office of the Flex Foods Limited (FFL) is situated at Lal Tappar Industrial Area, P.O. Resham Majri, Haridwar Road, Dehradun-248140 (Uttarakhand).
Company URL: http://www.flexfoodsltd.com/
Screener URL: http://www.screener.in/company/523672
Warren Buffett Checklist
|History of Consistently Increasing Sales, Earnings & Cash Flow||Yes.|
|Durable Competitive Advantage||Moderate on this factor.|
|Future Growth Drivers||Good growth expected for Indian Food industry.|
|Conservative Debt (Current liabilities < 3 X Net Profit)||Yes.|
|Debt Equity Ratio||0.44 which is slightly high.|
|Return on Equity must be Above Average||ROE is 18.92 which is above 15|
|Low CAPEX required to maintain current operations||Moderate capex required.|
|Management is holding / buying the stock||59% holding and it is flat for past 3 years.|
|Price is Under Valued (< intrinsic value)||Yes.|
|Stock Price is consolidating (now)||Not. 4x difference between high & low.|
|Stock Price is growing in past years along with EPS growth||Yes.|
Additional Futurecaps Checklist
|Consolidated PE, PB Ratio||PE: 8.78 , PB 1.7 (ok);|
|Cash Flow Positive, Net Profit % greater than 8%||Cash flow is positive. Net Profit % is around 16%.|
|Paying Dividends, Tax||Yes|
|EPS Growth Rate||40% as 3 year average.|
|Jump in Trailing Results||Yes.|
|Quarterly Results Growing||Yes. 100% growth in EPS qoq|
|Expected Gain in 5 Years||Considering standard growth of 30% and PE resizing to 35 (peer-standard) the company should give 12-15 times returns in 5 years.|
Week High & Low
|88.95 / 21.85 (Already 4 bagging done)|
|Volume Analysis||52000 which is slightly high|
|Power of Brand||Yes. It is part of UFlex group.|
|Corporate Governance, Reputation of Leaders||Yes.|
|Fraud reported||Not in current search.|
Here by we declare that Flex Foods is a mutt bagger stock.
2-3% of current portfolio.
Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity. The stocks recommended here are gone through Analysts of several years experience in stock market. Although they were successful in predicting future multibaggers, the overall stock market is a risky game. So we recommend the reader to put his/her own thoughts & invest wisely.