In this post I would like to provide Multibagger Analysis on Meghmani Organics Ltd (BSE 532865, NSE MEGH.NS).
Note This is part of our Free-multibagger Analysis which will not have any tracking & updates. I would recommend you buying our serious list of Paid-multibaggers subscription plan here.
Founded in 1986, Meghmani Organics is a leading manufacturer of pigments, agrochemicals and basic chemicals. The company has show tremendous record of growth & expansion.
Mr. Ankit Patel is the current Chief Executive Officer.
Company enjoys 14% share of Copper Phthalocyanine market. Being an Exporter it enjoyed Revenue Increase through the US Dollar – Indian Rupee Depreciation.
Accelerated by Chemical regulation in China.
Company have 5 subsidiaries.
Global Pigments market to be growtn 4.1% CAGR and reach $27 billion by 2023. This will give immense potential to the commpany coupled with the large capex plan initiated last year.
Risks low awareness in indian farmers, global competition, forex variations, global standards variation, corporate governance, chines de-regulation on chemicals.
Warren Buffett Checklist
|History of Consistently Increasing Sales, Earnings & Cash Flow||Yes.
Recent Year, Revenue Growth 49%, PAT Growth 95%
New Plant commissioning on the way.
|Durable Competitive Advantage||Moderate.|
|Future Growth Drivers||Moderate.
Sector outlook is Good.
|Conservative Debt (long term debt < 3 Net Profit)||Not.|
|Debt Equity Ratio, Current Ratio||0.44, 2.31|
|Return on Equity must be Above Average||21%|
|Low CAPEX required to maintain current operations||Moderate|
|Management is holding / buying the stock||48%. Increasing.|
|Price is Under Valued (< intrinsic value)||Yes.|
|Stock Price is consolidating (now)||Yes.|
|Stock Price is growing in past years along with EPS growth||Yes.|
Additional Futurecaps Checklist
|Consolidated PE, PB Ratio||PE 6, PB 2|
|Cash Flow Positive, Net Profit % greater than 8%||Yes. Yes.|
|Paying Dividends, Tax||Dividends: No, Tax: Yes|
|EPS Growth Rate||50%. Very Aggressive|
|Jump in Trailing Result EPS||Yes.|
|Jump in Quarterly Result EPS||Yes.|
|Expected Gain in 5 Years||5-10 Times|
|Price Movement Graph, 52 Week High & Low||30/6|
|Volume Analysis||6 lakh (High)|
|Power of Brand||Moderate.|
|Corporate Governance, Reputation of Leaders||Few issues on MFL promoter stake sale exists.|
|Fraud reported||Yes. Duty Evasion Arrest. link|
Definitely the company possess Multibagger properties at the current price. But, be cautious about the Management alerts.
This is part of Free Multibaggers plan which do not include Tracking & Updates. I would encourage serious investors to buy our Paid Subscription plan.
Disclaimer Futurecaps is an independent equity research team. Use of the information herein is at Investor’s own risk. This is not an offer to sell or solicitation to buy any securities and Futurecaps will not be liable for any losses incurred for the investment based on the advice. The Investor is advised to do due diligence in the scrip mentioned. None of Futurecaps Advisors hold 1% above Holdings of this company.