HSBC has a BUY on UFlex with the following recommendation,
We believe that the company will be able to grow its revenues at a CAGR of 25% (FY10-12) along with a EBITDA growth rate of 26% (FY10-12). Currently, the company is trading at a P/E (FY12E) of 5.3x and at a P/B (FY12E) of 0.86x. Globally, the packaging companies (Bemis and Sonoco which are the key international competitors) trade with an average P/E of 10.5X FY12E earnings. Given the companies current expansion plans and earnings visibility, we are valuing the stock at a P/B of 1x, there by arriving at a target price of Rs 200.
