Uflex has been increasing its momentum since March. In fact, it has also been hitting 52-week highs consecutively. The stock has witnessed one of the steepest V-shaped patterns in the market.
Midcaps and smallcaps are outperforming the largecaps after a period of two years. The surge of gains in the broader markets this year is unpredictable but also justified. One such listed company has been increasing its momentum since March along side largecaps. In fact, it has been hitting 52-week highs consecutively.
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Uflex Ltd is a leading packaging company. The stock has witnessed one of the steepest V-shaped patterns in the market. It has jumped 215 percent from its March low levels this year.
At 2:50 pm, the stock traded over 8 percent higher to Rs 364.50 per share on the NSE.
In February, when the COVID-19 fear started to spread across the world, however, the company's management did not blink their eyes. They said that they remain unaffected of the novel disease as they are hardly dependent on China for raw materials.
The management's strong commentary was proved in its June quarter earnings where they reported a two-fold rise in consolidated net profit to Rs 196 crore as against Rs 91 crore for the same period last year.
Total production volume also increased by 13 percent year-on-year (YoY) to 1,07,599 metric tonnes (MT) while total sales volume rose 9 percent YoY to 1,03,575 MT.
In its earnings note, the management remained confident as usual. It said, "While Uflex believes that its business will continue to remain unscathed by the pandemic as it continues to witness higher demand for its products globally so far in FY 2021, there could be uncertainties in the future due to underlying developments with respect to COVID-19, which are difficult to predict."
Considering the online retail purchase interest increasing daily, it is seen that the stock could continue its uptrend in the future. Rajesh Bhatia, group president and chief executive officer of Uflex said the company amidst the lockdown was able to complete the construction of new facilities in Poland and Russia and start trial runs.
Expect our margins to remain healthy in the medium term, added Bhatia. With such confident outlook on the business, who wouldn't want to buy this stock?
First Published: Aug 19, 2020 4:50 PM IST