Uflex (UFLEX)
CyclicalFairStock Score: 24/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹488.4 |
| Market Cap | ₹3,526.81 Cr |
| P/E Ratio | 11.12 |
| ROCE | 7.75% |
| ROE | 4.09% |
| Dividend Yield | 0.61% |
| Profit Growth | 16.3% |
| Debt/Equity | 1.25 |
| Sales Growth | 3.2% |
| Promoter Holding | 44.58% |
| 52-Week Range | ₹330 — ₹723.05 |
| Sector | Industrial Products |
| Book Value | ₹1,125.01 |
Strengths
- Trades below book value: P/B of 0.94 against ₹421.94 book value offers some asset cushion if the book is real.
- Promoter holding of 44.58% aligns owner interest with minority shareholders.
- Large operating scale with quarterly sales of ₹3,612 Cr suggests an established business.
- P/E of 14.57 is inexpensive if earnings normalize meaningfully from the current depressed level.
Concerns
- Profit growth is -66.57%, and the latest quarter net margin is under 1% (₹36 Cr profit on ₹3,612 Cr sales).
- ROE of 4.89% and ROCE of 7.75% are weak relative to a company carrying 1.21 debt/equity.
- Piotroski F-Score of 3/9 indicates deteriorating fundamentals and elevated financial risk.
- Sales growth is -3.28%, and dividend yield of 0.62% offers little income while waiting.
AI Analysis
At ₹398.50, Uflex sells below book value of ₹421.94—a 0.94 price-to-book. Graham would bring my attention to asset backing, but he would also demand earnings power. That is where Uflex disappoints today. The latest quarter made only ₹36 Cr profit on ₹3,612 Cr sales—a net margin under 1%. Sales have declined 3.28%, while profit has collapsed 66.57%. This is not a high-quality business with a durable moat; these numbers show a packager fighting weak pricing. Financial health is stretched: debt to equity is 1.21, return on equity is just 4.89%, and ROCE is 7.75%. Both returns are too low for a business carrying this debt. The Piotroski F-Score of 3/9 confirms that fundamentals are deteriorating, not improving. Dividend yield of 0.62% is not meaningful compensation for the risk. At 14.57 times current earnings, the P/E is not high, but with depressed earnings the multiple is misleading. If this is a cyclical trough, margins and profits may rebound strongly. If it is structural margin compression, book value may not be worth what the balance sheet says. Promoter holding of 44.58% is good—owners are with us—but it does not alter the economics. I would not buy on hope. I need evidence of recovering margins, lower debt, and better returns. For now, Uflex is a possible cyclical asset-backed situation, not a trusted wealth compounder.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer