RFBL Flexi Pack Limited was originally incorporated as "Sabar Flexi Pack Private Limited" in Gujarat in July 2005. The company underwent a transition in 2022-2023, changing its name to the current form and converting into a public limited company . The company operates a manufacturing facility located in Himatnagar, Gujarat, and is managed by its Managing Director, Kunjit Maheshbhai Patel. The primary business of the company is the manufacturing and trading of printed multilayer flexible packaging materials, including plastic film rolls and pouches. These solutions are essential for packaging applications across a diverse range of industries such as food and beverage, pharmaceuticals, personal care, and industrial applications. The products are engineered for durability, barrier properties, and moisture resistance. In addition to manufacturing, the company maintains a significant trading division dealing in Woven Fabric Packaging Material, Polyester Laminated films, and other specialized film types. The company operates on a Business-to-Business (B2B) model, catering to clients who require customized packaging solutions based on high-quality standards. Scrap generated during business operations is also sold for further processing. The company has shown substantial growth, crossing the Rs 100 Crore topline benchmark in 2025. Its strategy involves deeper market penetration and expanding its manufacturing capabilities through the establishment of a new facility using the IPO proceeds. This new unit is intended to improve operational efficiency and allow the company to undertake higher-precision jobs that were previously outsourced. As per financial performance, RFBL Flexi Pack Limited has posted total income / net profits of Rs 46.86 / 0.66 Cr (FY23), Rs 79.96 / Rs 5.78 Cr (FY24), Rs 135.46 Cr / 8.32 Cr (FY25) and Rs 69.66 Cr / 3.83 Cr (Upto 30.11.25 FY26). So as per previous financials data, company has shown good growth, but negative cash flow in FY24 and FY25, increase in trade receivables to total sales ratio from 6.8% in FY23 to 44.26% in 8M FY26 raises concerns. Company has an average EPS of Rs 3.84 and average RoNW of 62.16% for last three fiscals. Issue is priced at a P/BV of 3.72 as per NAV of Rs 13.44/- as on 30.11.25 If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 20.14, 14 and 20.25 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Grow House Wealth Management Private Limited is associated with this IPOs, and has handled only one IPO in last three fiscal years. From last one IPO, that opened above issue price or at par, on the day of listing. As of now, from last one IPO, it is trading above price or at par. (as on 07.05.26 ) As per financials, RFBL Flexi Pack Limited has shown good growth, RoNW is 60.18% and P/E is 20.14, 14 and 20.25 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. But, sudden rise in trade receivables, negative cash flow in FY24 & FY25 and significant tax litigations (around Rs 18.95/- Cr) raises doubts. The company is in the manufacturing and trading of printed multilayer flexible packaging materials, which is highly competitive business segment. BRLM has managed only one IPO in last 3 years. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment