MEGHMANI ORGANICS is one of the Multibagger Shares, identified by Dynamic Research which has made a 52 week high of 39.60 on 16th May 2016 and 53 week low of 14 on 21st May 2015, the stock is currently trading at 39.30 at a P/E of 13.03 and has debt equity ratio of 0.93.
Meghmani Organics Limited, is a result of transformation of Gujarat Industries, the latter was established as a partnership firm in 1986 to manufacture pigments. The company has diversified business interests in pesticides and pigment products.
Meghmani is Rs.6000 million business houses and is one of the largest producers of pigment blue in the world and one of the leading producers of pigment green and pesticides in India.
The sales of 80% of the pigment product and over 50% of pesticides products are achieved through exports. The company has four multifunctional production facilities in Gujarat out of which three are ISO 9001-2000.
Evolution into a leading chemical company
1986: Started Operations
1995: Converted into a Public Ltd. Co. 1st Agro Plant setup
1996: Expansion of pigments business with establishment of Panoli plant to manufacture CPC Blue
1997: Private Equity Investment in Meghmani Organics Ltd.
1999: Started Blue Pigment Production at Panoli Plant
2003: Acquisition of Ankleshwar Plant for expansion of range of Agrochemical Products.
2004: Acquired Agro assets from Rallis, Singapore Listing done
2007: India Listing done
2009: Acquired 2 new sited for Agro-chemicals at Panoli and Dahej
2013-14: New Pigment Plant at Dahej SEZ. Expansion of Caustic-Chlorine facility
2015: Diversification into caustic Potash
CUSTOMERS & MARKETS
Major Customers
Pigments
A partial list of their long-standing customers for pigment products is:
CIBA
Sun Chemicals
Flint Ink
Sudarshan Chemicals
They have:
Over 200 customers from across the globe - North America, Europe, Central and Latin America, and Asia-Pacific. Their customers are mainly MNCs who are leading players in the industries they operate.
Pesticides
A partial list of their long-standing customers for pesticides is:
Micro Flo
Valent
Meghmani Agrodyne Limited
FMC Agricultural Products
They have:
Over 90 customers, including leading pesticides manufacturers in North America, Europe, Latin America, Asia and end users in the domestic Indian market.
Growth Drivers
Financial Highlights (Annual Consolidated)
Net Sales 1267.83 (Mar 15) vis a vis 1156.95 (Mar 14) rise of 9.58%
Operating Profit 128.38 (Mar 15) vis a vis 115.63 (Mar 14) rise of 11.02%
PAT 45.98 (Mar 15) vis a vis 35.47 (Mar 14) rise of 29.63%
EPS 1.73 vis a vis 0.90
MEGHMANI ORGANICS is one of the Multibagger Shares, identified by Dynamic Research which has made a 52 week high of 39.60 on 16th May 2016 and 53 week low of 14 on 21st May 2015, the stock is currently trading at 39.30 at a P/E of 13.03 and has debt equity ratio of 0.93.
On back of various available triggers like debt reduction, margin expansion, higher plant utilization, and favorable business dynamics the stock is poised for a upward movement with a target of further 10%-15% from its CMP of 39.30. The Return on Asset stands at 2.92 while the Return on Equity stands at 7.95 which are not very impressive.
Dynamiclevels recommends Meghmani Organics Limited as one of our Multibagger Stocks.
To get more Support and Resistance levels of the share please visit Meghmani Organics Share Price Forecast
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