Flex Foods Ltd.

Flex Foods Ltd.
BSE Code: 523672
Last Close: Rs.26
Flex Foods Ltd. (FFL) is a 20% dividend paying company, part of the Flex Group comprising Flex Industries Ltd., FlexEngineering Ltd. and other companies involved in packaging and IT business with a total turnover of Rs.140 cr. ($300million).The company is into agro based value added food products catering to the overseas markets in Europe, USA, Canada and the Middle East. It started 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 TPA.The company also deals in canned mushroom under the brand 'Chef's Choice'. Recently, it embarked on a major expansion programme by installing world class manufacturing facilities for IQF and air-dried mushrooms, culinary herbs and fruits & vegetables. The company’s equity is Rs.12.44 cr. and promoters hold 58.99% stake while the investing public holds the balance 37.62%. For FY09, FFL posted a net profit of Rs.8.42 cr. against Rs.7 cr. in FY08 and recorded an EPS of Rs.6.77. At current levels, the FFL stock is available dirt cheap at a P/E ratio of just 3.7 with a good dividend yield. Buy for shortterm investment with stop loss of Rs.22. On the upper side, the stock will go up to Rs.31-35 level in coming days.