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Mega Flex Plastics
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Mega Flex Plastics Limited was originally incorporated as 'Mega Flex Plastics Private Limited' on November 18, 2003 vide Certificate of Incorporation under the provisions of Companies Act, 1956 issued by the Registrar of Companies, West Bengal. Subsequently, the Company was converted to Public Limited Company vide a fresh Certificate of Incorporation issued by Registrar of Companies, West Bengal, consequent upon conversion from Private Limited to Public Company dated February 01, 2007 in the name of 'Mega Flex Plastics Limited'.
The Company was originally formed in year 2003 under visionary and dynamic leadership of Late Anup Chand Sethia and his son Mr. Rakesh Sethia with the main object of manufacturing, processing, buying, selling, trading etc. in flexible packaging material and to do all other acts and things necessary for the attainment of the foregoing objects to empower the Indian rural sector with packaging solutions. With his decades of rich experience in plastic processing, oil milling, paper packaging and other industries, he visualized tremendous opportunity available in packaging of horticultural produce, especially potato, onion and other vegetables.
In 2006, the Company acquired land of 2.095 acres in Howrah Poly Park from West Bengal Industrial Development Corporation Limited (WBIDC Limited) on lease basis for 99 years to set up plastic products/packaging unit. In year 2007, it started manufacturing facility with installation of 27 looms with production capacity of 22.61 million bags per year. It decided to put 27 looms (First Phase) all designed specially to manufacture PP Leno Bags mainly and one Extrusion Tape line which can accommodate 60-65 looms thinking of future expansion. It was a very bold decision from the management to go fully for the product which was hardly established in the market. But they had full confidence on the future of the LENO Bags.
The Company became an integrated fruits and vegetable packaging solutions provider offering Leno Bags, which are used for packing of fruits & vegetables, Technical Textile Fabric and Sutli (Fibrillated Twisted Thread). It is a part of a group whose other business interests include manufacturing of rigid plastic packaging products i.e. Plastic Container for Paints, Lubricants, Greases etc.; paper packaging products i.e. Corrugated Boxes & Mono Boxes; and logistics & warehousing etc.
The Company export Leno Bags to European countries and is capable to produce Sutli (fibrillated Twisted Thread) as per the demand. Vegetables were mainly packed in jute bags. Jute bags was not an efficient mode of packaging due to its high cost, voluminous in size, wastage of packed produce because of high water absorption resulting in huge loss during storage and transportation. With technical and marketing support of some big polymer manufacturers, it reached out to farmers at grass root level in villages of West Bengal and popularized use of Leno Bags. This revolutionized the way vegetables were packed and proved to be a boon for the farmers.
In 2009, the Company expanded the production capacity to 17 looms.
In 2010, production capacity was increased to 3 looms. It achieved production of 20 million bags in 2009-10.
In 2011, production capacity of the looms was increased to 6. It achieved production of 30 million bags in 2010-11.
In 2014, it achieved the production capacity of 40 million bags in 2013-14.
In 2015, it purchased office premises at 4 Ho Chi Minh Sarani, in Kolkata.
In 2016, it additionally installed 1 loom of production capacity.
In 2018, it additionally installed 6 looms of production capacity and achieved the production capacity of 50 million bags in 2017-18.
It gradually increased capacity to 51.30 million Bags per year in 2020.
Mega Flex Plastics share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Mega Flex Plastics indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Mega Flex Plastics is valued compared to its competitors.
Mega Flex Plastics PE ratio helps investors understand what is the market value of each stock compared to Mega Flex Plastics 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Mega Flex Plastics evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Mega Flex Plastics generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Mega Flex Plastics in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Mega Flex Plastics shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Mega Flex Plastics compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Mega Flex Plastics over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Mega Flex Plastics helps investors get an insight into when they can enter or exit the stock. Key components of Mega Flex Plastics Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Mega Flex Plastics shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Mega Flex Plastics ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Mega Flex Plastics provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Mega Flex Plastics highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Mega Flex Plastics .
The balance sheet presents a snapshot of Mega Flex Plastics ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.