India's UFlex's stock rises in response to its subsidiary's plans to establish a packaging plant in Egypt

On Friday, October 4, UFlex's stock price increased by over 4% following the announcement by the business that its subsidiary Flex Asepto (Egypt) S.A.E. intends to build a cutting-edge aseptic packaging facility in Egypt.

The Noida-based UFlex said in a stock exchange filing on Thursday that this action is a part of the company's strategic growth into high-demand areas throughout Europe, the Middle East, and East Africa.

By September 30, 2025, the facility—which has the potential to generate 12 billion packs annually—should be operating.

This project will require an anticipated $126 million investment in total, which will be paid for with a combination of owned and borrowed cash.

Following the announcement, UFlex shares experienced a 3.85% increase, peaking at ₹718.4 on the BSE within the same day. Due to this rise, the market value of the company has exceeded ₹4,900 crore.

The company claims that this expenditure is justified by the need to meet the increasing demand for aseptic packaging in the area.

Due to its use in preserving liquid food goods without refrigeration, aseptic packaging is seeing a rise in demand at the moment of UFlex's decision.

The growth aligns with UFlex's objective of enhancing its worldwide presence and satisfying the demands of clients in developing economies.

The maker of packaging films, UFlex, is aiming for an EBITDA of over ₹2,000 crore in the financial year 2025 (FY25), according to a statement made in May by Rajesh Bhatia, Group President for Finance & Accounts and CFO.

Bhatia noted that the company's operating profit margins have remained consistent over the last two quarters, ranging from 12.5 to 13%, in an interview with CNBC-TV18.

Given the recent expenditures and a 10% increase in these margins, Uflex is confident in achieving its EBITDA target. 

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