Value Pick August ’18: Meghmani Organics Ltd, Update
Update
“Acquired an Immovable Property”
Meghmani Finechem Limited in its BSE filing has said that the Company has acquired an immovable property in the form of an Industrial Plot No. D-II/13 having area admeasuring 289844.41 sq. meters in GIDC Dahej (Taluka: Vagra, District: Bharuch Gujarat) which is in close proximity of the present manufacturing facility of the Company.
The Company has acquired this land considering the future projects.
The stock ended at INR 1467 (UP 3.25%) with a volume of 1,77,165 shares on the National Stock Exchange (NSE)
30 September 2022
Update
“Commissioned Caustic Soda plant along with Captive Power plant”
Meghmani Finechem Limited (MFL) today in its BSE filing has said that, the Company has successfully commissioned an additional 1,06,000 TPA capacity of Caustic Soda along with Captive Power plant of 36 MW at Dahej (Gujarat).
Considering the above, now, “MFL” stands at Caustic Soda capacity of 4,00,000 TPA and Captive Power plant of 132 MW.
Share of Meghmani Finechem Ltd is currently trading at INR 1435.
21 July 2022
Update
Q1 FY 2022-23 Numbers
Meghmani Finechem Limited (MFL) incorporated in 2007 – a leading integrated manufacturer of chemicals in India has posted its Q1 Numbers today.
Key Highlights – Q1 FY 2022-23
Revenue of INR 534 Cr v/s INR 290 Cr up 84% Y-O-Y (largely driven by improved realizations and higher sales volume of 5%)
EBITDA almost doubled to INR 187 Cr and EBITDA margin improved to 35% (despite high inflationary pressure)
Profit After Tax up 3 times to INR 108 Cr Y-O-Y (INR 37 Cr last year) and PAT margin stood 20% compared to 13% in Q1FY22
ROCE and ROE improved to 33% (19% in Q1FY22) and 48% (22% in Q1FY22) respectively
Chairman & MD Said –
I am pleased with our performance in Q1FY23.
We have delivered record operating and financial performance for the quarter. The growth in the quarter is on account of high realizations and volume growth coming from high efficiency/capacity utilization from all the products.
In this quarter, we have commissioned India’s first Epichlorohydrin (ECH) plant based on the glycerol process and also we have entered into a JV to set up an 18.34 MW Wind-Solar hybrid power plant for internal consumption.
Recently in July, we have also commissioned India’s largest CPVC resin plant. Once these new projects stabilize and reach optimum capacity utilization it will start contributing in a sizeable way both to the top line and bottom line. We expect that to happen Q3FY23 onwards.
With all this we are moving in line with our commitments, long term goals and with focus on the environment and sustainability.
Daily Chart –
meghmani finechem share price is INR 1556 today with a volume of 5,35,741 shares on the NSE.
Disc: Finblab (vishal dalwadi) is holding MFL in a long-term portfolio.
Also Read – IMPORTANT Q1 RESULTS FOR THE WEEK – 18 TO 24 JULY ’22
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9 November 2019
Update:
Q2 FY 2019-20 Numbers
Meghmani Organics Limited, an India-based company operates into pigments, agro chemicals and basic chemicals segments has posted its financial results (consolidated & standalone) of the second quarter and half year ended on 30th September, 2019. Read consolidates numbers –
Revenue from operations stood at INR 532.41 crore in Sept ’19 up 6.18% Y-O-Y basis from INR 501.40 crore in Sept ’18. However, the Q-O-Q revenue de-grew by 13.59% (INR 616.20 crore for June ’19)
The Pigment segment reported net revenue of INR 164.50 crore, up 6.36 percent Y-O-Y.
Agrochemical segment’s net revenue for the quarter grew by 12.58 percent Y-O-Y to (INR 218.33 Cr vs INR 193.93 Cr)
Revenues from Chloro Alkali and its Derivatives for the quarter ended September 2019 grew by 4.39 percent Y-O-Y (INR 160.16 Cr vs INR 153.43 Cr)
Read: DR LAL PATHLABS quarterly numbers
Quarterly Net Profit at INR 97.49 crore in Sept ’19 up 25.31% Q-O-Q basis from INR 77.80 crore in June 2019. However, Y-O-Y profit grew by 57.85% (INR 61.76 crore in September 2018)
Meghmani Organics EPS has increased to Rs. 3.31 in September 2019 from Rs. 2.24 in June 2019.
Meghmani Organics is currently trading at INR 55.55 on November 08, 2019 (NSE) and is trading below its 200 EMA (58.35) and above its 50 EMA (52.90)
Must Read: Finblab Value Pick Stock Polycab India Ltd
09 August, 2018
Company Background
History
It was 1986, when Gujarat Industries (now Meghmani Organics) was established as a partnership firm in Gujarat, India to manufacture pigments.
High productivity and profitability transformed Gujarat Industries to a joint stock company, under the name of Meghmani Organics Limited, by 1995. Since then Meghmani Organics has diversified its business interests to include a range of pesticides and other pigment products as well.
Today, Meghmani Organics Limited is a leading manufacturer of pigment and pesticide products in the country and is the recipient of several prestigious awards in recognition of its outstanding business performance.
Product Portfolio – Meghmani Organics Limited
The product portfolio of Meghmani Organics Limited mainly covers three segments;
Pigments:
- The Pigment Products which the company manufacture fall into 3 main categories; (1) Pigments for Plastics, (2) Pigments for Printing Inks, and (3) Pigments for Coatings
- The Company’s Pigment products are used in multiple applications, including printing inks, plastics, paints, textiles, leather, paper and rubber.
- The Company’s clients are mainly MNC players (from North America, Europe, Central and Latin America, and Asia-Pacific) who are leading players in the industries they operate.
Pesticides:
- The Agrochemical (Pesticides) products which the company manufacture fall into 3 main categories; (1) Technical Products, (2) Formulations, and (3) Intermediates
- The Company’s Agrochemical products are used in crop protection, public health, termite & insect control and veterinary applications.
- Company’s client list include leading pesticides manufacturers in North America, Europe, Latin America, Asia and end users in the domestic Indian market.
New Products
- The Company is keen identify a growing demand for high performance pigments due to fundamental shifts in the printing ink and paint sectors. The company will soon start producing water-based pigments. It will target export markets such as Japan by setting the course for the production of Hysol-P based CPC Blue product.
- The Company have the capabilities to produce six off-patent pesticides and developing capabilities to manufacture three more whose patents are expiring soon.
More than 80% of company’s pigment products and over 50% of its pesticides products are exported the world over.
Production Plants
Meghmani Organics Limited has four production plants –
- The Vatva Plant (Established in 1986) — ISO 9001-2000 Certified
- The Chharodi Plant (Established in 1995) — 9001-2000 Certified
- The Panoli Plant (Established in 1996) — 9001-2000 Certified
- The Ankleshwar Plant (Established in 2003)
Distribution Network
The Company has a distribution network of 20 overseas distributors catering to its international markets for its Pigments and Agrochemical products, and a chain of over 1,000 stockists, agents, distributors and dealers covering the domestic market in India.
Meghmani Organics – Financial Data
Sound fundamentals, outstanding export performance, strong presence in the domestic market and a focused management team has helped Meghmani Organics Limited to grow at a compounded annual growth rate (CAGR) of 17% and profits 10% over the past 3 years
Listed On
The shares of Meghmani Organics Limited are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.
Stock Information – Meghmani Organics
Share Holding Pattern
Meghmani Organics – Financials
Conclusion –
6000 million Rupees Meghmani Organics Limited is – (1) One of the largest producers of pigment blue in the world, (2) One of the leading producers of pigment green, and (3) One of the largest producers of pesticides in India
The Promoters have steady stakes in the company since last 4 quarters (more than 50%), and with no pledge. Along with this some of the well-known institutions like Indiabulls and others have high stake in the company.
Meghmani Organics Ltd.’s Q1FY19 consolidated Net Profit rises 77.9% YoY to INr 77.07 Cr. Company’s consolidated revenue for the Q1FY19 came in at INR 476.48 Cr, up by 13.1% YoY. The operating profit for the quarter came in at INR 123.99 Cr, which increased by 35.9%. The EBITDA margin expanded by 437 bps to 26% in Q1FY19.
Recently, Meghmani Organics Limited acquired 24.97% equity stake in Meghmani Finechem.
On Technical Charts, the share price of Meghmani Organics has taken a support around 75 to 80 levels (on a daily chart) multiple times in the recent past which are co-incidentally its 89 EMA on a weekly chart.
Considering the above mentioned factors, the techno-funda analysis, and sector outlook in mind; MEGHMANI ORGANICS LIMITED looks good at INR 93. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also)
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Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.
