Synopsis: First Water Fund raised its Uflex stake likely to 3.64% by acquiring shares worth Rs 25.07 crore, signaling institutional confidence in the packaging firm. Let’s dive into the company specifics.
A leading flexible packaging solutions provider has witnessed a significant change in its shareholding pattern. First Water Fund has acquired a substantial stake from K2 Family Private Trust. This transaction has boosted First Water Fund’s holding to likely 3.64 percent from 2.47 percent.
Uflex Limited‘s stock, with a market capitalisation of Rs. 3,410.5 crores, rose to Rs. 484, hitting a high of up to 3.3 percent from its previous closing price of Rs. 468.55. However, the stock over the past year has given a negative return of 15.5 percent.
DII Investment
First Water Fund has increased its stake in Uflex, a leading packaging solutions company, through recent bulk deals. On December 11, the fund bought 5.45 lakh shares (0.75% stake) from K2 Family Private Trust for Rs 25.07 crore at Rs 460 per share. This follows an earlier transaction on December 3, where both parties exchanged 3 lakh shares at Rs 477 per share. These purchases show growing confidence in Uflex’s business prospects.
First Water Fund is part of First Water Capital, an investment firm started by Arun Chulani and Kunal Bhakta in 2017. The fund focuses on long-term investments in Indian companies with strong fundamentals. With these latest purchases, First Water Fund’s total holding in Uflex has likely jumped to 3.64% from 2.47% as of September 2025 a significant increase of over 1% in just three months.
The steady stake building by First Water Fund suggests institutional investors see value in Uflex’s packaging business. The fund paid a premium in the earlier December 3 transaction (Rs 477 per share) compared to the recent purchase (Rs 460 per share), indicating they are willing to buy at different price points. This strategic accumulation of shares typically signals positive sentiment about the company’s future growth and performance in the packaging industry.
Q2 Financial Highlights
The company reported flat revenue of Rs. 3,832 crore in Q2FY26, virtually unchanged from Rs. 3,833 crore in Q2FY25. However, revenue declined 1.8% QoQ from Rs. 3,901 crore in Q1FY26, indicating sequential weakness. Over the past three years, the company has delivered modest sales growth with a 5% CAGR, though this momentum appears to be stalling in recent quarters.
On the profitability front, the company swung to a profit of Rs. 27 crore in Q2FY26 from a loss of Rs. 65 crore in Q2FY25, marking a significant turnaround. However, profit plunged 53% QoQ from Rs. 58 crore in Q1FY26, raising concerns about earnings stability. The 3-year profit CAGR stands at -40%, highlighting sustained pressure on bottom-line performance, while ROE has grown at 5% CAGR over the same period.
Written By Fazal Ul Vahab C H
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