Uflex drops over 8% in two days; down over 20% in one month

Uflex tumbled 6.27% to Rs 448.45, extending losses for second consecutive session.

The stock has lost 8.10% in two sessions, from its recent closing high of Rs 487.95 recorded on 20 February 2023.

In the past one month, the stock has declined 20.47% while the benchmark Sensex has lost 0.92% during the same period.

On the technical front, the stock's daily RSI (relative strength index) stood at 16.848. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On daily chart, the stock is trading below its 50-day, 100-day and 200-day simple moving average (SMA) placed at 542.39, 604.94 and 624.64, respectively.

The recent selling in Uflex was triggered in the aftermath of media reports that suggested that the Income Tax Department on Tuesday conducted searches at multiple premises linked to packaging major Uflex as part of an investigation against the company for alleged tax evasion.

Around 60-70 premises, including the Noida-based company headquarters, in Delhi, UP, Jammu and Kashmir, Gujarat, West Bengal, Tamil Nadu and Karnataka are being covered, the reports added.

The BSE has sought clarification from Uflex, with reference to news reports quoting "Income Tax department raids Uflex Ltd, searches 64 locations in various cities". The company's reply is awaited.

UFlex is India's largest multinational flexible packaging and solutions company. The company has a presence across all verticals of the packaging value chain - flexible packaging, packaging films, aseptic liquid packaging, holography, printing cylinders, engineering, and chemicals.

The company reported a consolidated net loss of Rs 85.41 crore in the quarter ended December 2022 as against net profit of Rs 313.21 crore during the previous quarter ended December 2021. Sales rose 0.53% to Rs 3405.73 crore in Q3 FY23 over Q3 FY22.

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