Uflex Limited was a stock that I had recommended long back for investing purpose when it was trading around 150 levels. It went upto 300 as well and then due to some news about poly films prices lowering, the stock started correcting and then the news of CMD going to jail made a huge splat on this stock and also affected it’s peers. Uflex went down as much as 36% after that CMD’s arrest news and after the news of CMD coming out from jail is again driving the stock up and is trading around 210 right now. But if you see the financials of the company then you’ll understand that Uflex is looking extremely strong. The management is confident of maintaining the high profit and sales growth. Uflex as well as several other poly film companies are spending on expansions due to the rising demand.

I’m bullish on stocks like Jindal Poly, Ester as well from a long term view but from short term, Uflex is the stock you might want to enter as your first choice. The reason I’m more bullish on Uflex is because it has unnecessary came down much more than other poly stocks due to the CMD news but now that he has got the bail, the stock is moving up sharply each and every day. If you enter Uflex at current levels, you can easily make a nice gain in short term but I’ll recommend holding onto the stock from medium to longer term perspective, solely from a fundamental point of view. Fundamentally the stock is looking really strong. I will discuss the financials of the company in detail after it’s Q3 results which according to me should drive the stock to new highs.

Buy Uflex with medium term targets of 450-500.

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1. Sell Uflex Stock