Stock falls 4.7% after company’s former director committed fraud

1. Uflex Ltd., India's largest multinational flexible packaging company, saw a 4.7% decline in its stock on Wednesday due to fraudulent activities by a former director of its UK subsidiary.

2. The company's market capitalization is ₹2,939 crore, and its shares were trading at ₹405.65 at 12:45 p.m., down 3.08% from the previous closing price.

3. The fraud involved kickbacks from suppliers of Uflex Europe Limited, and legal actions are being pursued under UK laws.

4. Uflex Ltd. offers flexible packaging solutions globally and has shown mixed stock performance, with a 14% decline in the last six months and a 19% gain in the preceding 12 months.

5. Revenue dynamics show a 5% year-over-year decrease in revenues, from ₹3,483 crores in Q3FY23 to ₹3,309 crores in Q3FY24, with reduced net losses during the same period.

6. The company's revenue sources are 59% from films and 41% from the packaging business as of H1FY24.

7. Uflex Ltd. has a diverse clientele, including major brands like Coca-Cola, Nestle, and Mondelez International.

8. Customer concentration is spread out, with the top customer contributing 12% of revenues and the top 5 customers collectively accounting for around 22% of revenues.

9. The company operates a global sales and distribution network, serving over 150 countries, with 39% of revenues from domestic customers and 61% from international customers.

10. Uflex Ltd. has 16 manufacturing facilities across 5 continents and 9 countries, with a global capacity of approximately 780,000 MTPA, ensuring efficient delivery worldwide within 15 days.