Stock Pick From Investment And Packaging Sector

Muthoot Finance (Muthoot) is the largest gold financing company in India, with retail loan AUM of Rs 24,990 crore as of December 321, 2016. Retail loans registered an increase of Rs 117 crore during the quarter and Rs 1582 crore at 7 per cent during the last 9 months. For nine months ended December 31, 2015, the company reported 7.71 per cent growth in standalone net profit of Rs 544.33 crore. It’s standalone Net Interest Income (NII) stood at Rs 1,720.66 crore, registering growth of 4.89 per cent. Apart from the gold loan business, it provides money transfer services, white label ATMs, collection agency services and has recently ventured into affordable housing finance. It is concentrated in the southern India at around 65 per cent of the branches and 57 per cent of the total loan accounts are concentrated in Kerala, Andhra Pradesh, Tamil Nadu and Karnataka.

UFLEX

Uflex Ltd (Uflex) is one of the largest fully integrated Indian flexible packaging solution providers with a global offering. In 9MFY16, the company reported around 25 per cent growth in consolidated net profit of Rs 232.60 crore. Its consolidated revenue marginally decline of 2 per cent of Rs 4,623.59 crore. EBITDA reported growth of 6.83 per cent at Rs 611.79 crore along with operating margin expanded by 27 bps at 13.23 per cent. It is setting up a Rs 550 crore Asceptic Packaging Material Project for packing liquids at Sanand, Gujarat. Global major Tetra Packaging is the only player currently operating in this space in India. On the valuation front, it is currently trading at 4.4 times, price to earnings (P/E) ratio with EPS of Rs 41.7 on TTM basis and based on price to book value it is traded at 0.4 times, price to book (P/BV) ratio with BVPS of Rs 455.