Flex Foods Ltd. Detail
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Flex Food Ltd. is in portfolio of Subramanian P. He is one of the top investors in India. It can be categorized as Food Processing Company. It is engaged in the growing and processing of Culinary Herbs , Mushrooms, Fruits and Vegetables catering to the Domestic and International markets mainly in Europe, USA, Canada & Australia.
Flex Food Limited is an associate company of UFLEX, a 2.3 Billion dollar company, leader in flexible packaging technology. As per the Company website it sources its raw material through contract farming through a dedicated network of 500 farmers.
Below is list of products from the Company. Note it targets Indian market as well as Foreign markets. It offers three kind of processed food Freeze Dried, Air dried and Frozen. It also offers canned foods as well.
- Culinary Herbs
- Fruits and Vegetables
- Canned Foods
Note it is part of Uflex group of Companies.Uflex is one of the top Companies in packaging sector. So management pedigree and packaging experience is already there. It also offers online sale and bulk orders as well through website itself.
Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Flex Foods Ltd. Stock Performance
In year 2002 the Company was trading near 12 INR mark. It is now trading close to 60 mark. So in past 16 years it has given 5 times return. Move over the dividend yield is 4% at current market price. At base price of 2002 dividend itself gives you 20% return.
This is beauty of dividend paying company which also increases in price with time. So company has rewarded the investors in past. Note between year 2002 and 2012 Company has moved only slightly. It has slow increase in price. Last few years were very good for it. It even went close to 150 mark as well.
Flex Foods Ltd. My Opinion
Flex Foods has good parentage. The parent Company Uflex also gave decent returns to investors in past. Flex foods deals with herbals, fruits and vegetables. Demand of these items are on growth in Indian markets as well as foreign markets.
The network of Uflex benefits it as well. Company has presence in various markets outside India. This helps in increasing sales outside India. Outside India is major market for canned fruits and vegetables. Also renewed interest in herbs will help company drive the sales.
Herbs are becoming popular in India as well with time. People are increasingly using herbs in their diet as preventive measure for various disease.
The past performance was good. It makes an interesting case for itself. I would be adding it to my stock watch list. I believe that food processing companies will perform in future.In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.