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Posts tagged ‘meghmani’

2
Apr

Meghmani Organics – Multibagger Analysis

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.

Meghmani Organics

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.

Website: http://www.meghmani.com/

CMP: 60.00

Growth Aspects

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.

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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.

Sales Growth

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Profit Growth

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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.

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Durable Competitive Advantage Moderate. image
Future Growth Drivers Moderate.

 

 

Sector outlook is Good.

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Conservative Debt (long term debt < 3 Net Profit) Not. image
Debt Equity Ratio, Current Ratio 0.44, 2.31 image
Return on Equity must be Above Average 21% image
Low CAPEX required to maintain current operations Moderate image
Management is holding / buying the stock 48%. Increasing. image
Price is Under Valued (< intrinsic value) Yes. image
Stock Price is consolidating (now) Yes. image
Stock Price is growing in past years along with EPS growth Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PE 6, PB 2 image
Cash Flow Positive, Net Profit % greater than 8% Yes. Yes. image
Paying Dividends, Tax Dividends: No, Tax: Yes image
EPS Growth Rate 50%. Very Aggressive image
Jump in Trailing Result EPS Yes. image
Jump in Quarterly Result EPS Yes. image
Expected Gain in 5 Years 5-10 Times image
Price Movement Graph, 52 Week High & Low 30/6 image
Volume Analysis 6 lakh (High) image
Power of Brand Moderate. image
Corporate Governance, Reputation of Leaders Few issues on MFL promoter stake sale exists. image
Fraud reported Yes. Duty Evasion Arrest. link image
Celebrity Investors Yes image

Declaration

Definitely the company possess Multibagger properties at the current price.  But, be cautious about the Management alerts.

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Note

This is part of Free Multibaggers plan which do not include Tracking & Updates.  I would encourage serious investors to buy our Paid Subscription plan.

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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.