FLEX FOODS LIMITED (523672) - GROWING FAST

Today I am expressing my view on one food product/ processing  company.

FLEX FOODS LIMITED ( 523672)

Company incorporated on 5th February’1990 with the Registrar of Companies under the Indian Companies Act. The Registered Office of the FFL is situated at Lal Tappar Industrial Area, P.O. Resham Majri, Haridwar Road, Dehradun-248140 (Uttarakhand).

FLEX FOODS LIMITED, a company 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.

Flex Foods Limited is in the business for more than two decade and has been selling its products mainly in US and European market through it renowned and reputed distribution channels.

List of countries where Flex Foods export :

• USA
• North America
• Canada
• Europe
• Australia
• South Africa
• Middle East countries

TECHNOLOGY

1.Freeze drying

Freeze drying is a process where frozen raw materials are dried in vacuum without thawing and dehydrated such that ice in the product is sublimed into water vapour. In the freeze drying process, cell structure remains intact. Freeze dried product retains the color, shape, flavor and nutritional value better than other drying methods.

Culinary Herbs: Oregano, Dill, Mint, Basil, Sage, Thyme, Savory, Parsley, Chervil, Marjoram, Rosemary, Chives

Fruits/Vegetables: Apple, Strawberry, Sweet Corn, Peas, Papaya, Mushroom, Banana, Lemon Grass, Green Pepper Corn

2. Air drying

In air drying process, water in the food stuff is drawn out and thereby preservation is achieved.

Culinary Herbs: : Oregano, Dill, Rosemary, Chives, Mint, Basil, Sage, Thyme, Savory, Parsley, Chervil, Marjoram, Coriander,

Fruits/Vegetables: Green French Beans, Cabbage, Bell pepper, Carrots, Cauliflower, Spring Onion, Mushroom

3.Frozen / IQF

IQF ingredients are produced by spreading fresh harvested herbs or vegetables in a single layer on a slow moving conveyor through sub zero air. The product is free flowing individually quick frozen that can be easily handled.

Culinary Herbs: Dill, Mint, Basil, Sage, Thyme, Savory, Parsley, Chervil, Coriander, Marjoram, Oregano

Fruits/Vegetables: Leek, Peas, Broccoli, Mushrooms, Mango, Papaya, Banana

GLOBAL PRESENCE

The company is engaged in the trade of agro based value added food products catering to the international markets mainly in Europe, USA, Canada & Australia. The company started its commercial operations in 1992 by establishing a 100% EOU for vacuum freeze dried vegetables mainly mushroom and culinary herbs with a total processing capacity of 2000 MTs per annum.

The company serving the market since more than a decade deals in selling its products mainly in US and European market through it renowned and reputed distribution channels.

Company shares are trading in BSE. Promoter holding in the company is 59.6% 

Company posted 18.7Cr top line with over 14% operating margin & Net profit is 0.32 Cr in the Dec qtr.

Stock is trading low PE of 23 against its peers, industry PE is 54.

Stock is trading at Rs 105.

As the company manufacturing value added services to food and vegetables with new technologies which is globally accepted by customers.More and more food / vegetables can be preserved through these techniques and a huge demand for some of the seasonal vegetables will be a boost for this company. This stock Will be a wealth creator for investors in near future.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”