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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Meghmani Organics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 7:28 pm

Market Cap 2,592 Cr.
Current Price 102
High / Low116/71.4
Stock P/E
Book Value 59.0
Dividend Yield0.00 %
ROCE3.13 %
ROE6.71 %
Face Value 1.00
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Meghmani Organics Ltd

Competitors of Meghmani Organics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Epigral Ltd 8,673 Cr. 2,0102,408/88629.6 3370.25 %17.5 %16.9 % 10.0
Dharmaj Crop Guard Ltd 957 Cr. 283390/19723.7 1170.00 %14.5 %13.2 % 10.0
Bhaskar Agrochemicals Ltd 34.1 Cr. 65.5122/42.117.3 29.20.00 %14.7 %13.4 % 10.0
Bhagiradha Chemicals & Industries Ltd 4,094 Cr. 328448/117152 51.00.03 %9.69 %6.27 % 1.00
Best Agrolife Ltd 1,430 Cr. 606918/45438.8 3200.49 %16.5 %18.1 % 10.0
Industry Average12,409.37 Cr1,811.3947.19375.950.30%13.80%15.51%7.35

All Competitor Stocks of Meghmani Organics Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales448463498548640812783646549574426379352
Expenses357428410470562678652567497496448371360
Operating Profit9035887878134132785378-228-8
OPM %20%8%18%14%12%16%17%12%10%14%-5%2%-2%
Other Income1018282126273826242771210
Interest12-99-4-379-3431641327
Depreciation12141515151718181823242323
Profit before tax7648928893136142891567-43-16-48
Tax %26%25%25%26%26%25%23%25%46%19%20%3%20%
Net Profit563669656810210966854-34-15-38
EPS in Rs11,180.007,206.002.702.572.694.024.292.600.332.13-1.36-0.60-1.50

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7001,6372,4982,5531,928
Expenses5951,3532,1192,2111,812
Operating Profit105283379342116
OPM %15%17%15%13%6%
Other Income1303010211470
Interest181196676
Depreciation2251637787
Profit before tax19425240931323
Tax %23%26%26%24%
Net Profit15018630423813
EPS in Rs29,914.0037,296.0011.979.350.50
Dividend Payout %17%19%12%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2020-20212021-20222022-2023
YoY Net Profit Growth (%)24.00%63.44%-21.71%
Change in YoY Net Profit Growth (%)0.00%39.44%-85.15%

Meghmani Organics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 3 years from 2020-2021 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:-1%
TTM:-11%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-3124%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:1%
1 Year:31%
Return on Equity
10 Years:%
5 Years:%
3 Years:9%
Last Year:-7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:32 pm

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital252525252525
Reserves9611,1481,4411,6441,5021,474
Borrowings264268499824837798
Other Liabilities407533832705676896
Total Liabilities1,6571,9742,7983,1983,0403,194
Fixed Assets4816349111,1661,1521,622
CWIP10111218835652174
Investments19130421118311444
Other Assets8859241,4871,4941,2531,454
Total Assets1,6571,9742,7983,1983,0403,194

Reserves and Borrowings Chart

Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2233365204250
Cash from Investing Activity +13-307-133-418-178
Cash from Financing Activity +-26-1458234-85
Net Cash Flow812-1021-14

Free Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-159.0015.00-120.00-482.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days241927975101
Inventory Days271152161158185
Days Payable209137144108176
Cash Conversion Cycle30210696124109
Working Capital Days2398999113134
ROCE %19%24%16%-3%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters49.36%49.41%49.29%49.37%49.37%49.48%49.50%49.32%49.32%49.32%49.32%49.33%
FIIs1.25%1.25%1.44%1.64%1.57%1.53%1.50%1.34%1.30%1.52%1.39%2.22%
DIIs0.00%0.00%0.00%0.08%0.34%0.45%0.45%0.61%0.26%0.20%0.20%0.42%
Government0.00%0.04%0.05%0.05%0.05%0.05%0.04%0.04%0.04%0.04%0.04%0.04%
Public49.38%49.29%49.23%48.87%48.69%48.50%48.51%48.69%49.09%48.93%49.05%47.98%
No. of Shareholders1,26,6141,27,3061,29,4061,30,9921,28,5071,27,1981,31,3361,40,6721,40,8291,52,7031,46,0101,28,875

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund140,7450.191.063692024-11-1038042.28%
Groww Nifty Total Market Index Fund3690.0103692024-11-100%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-4.179.3511.977.335.88
Diluted EPS (Rs.)-4.179.3511.977.335.88
Cash EPS (Rs.)-0.5412.3814.439.336.76
Book Value[Excl.RevalReserv]/Share (Rs.)60.0765.6457.6546.1338.79
Book Value[Incl.RevalReserv]/Share (Rs.)60.0765.6457.6546.1338.79
Revenue From Operations / Share (Rs.)61.59100.3798.2464.3627.51
PBDIT / Share (Rs.)0.6817.1918.6712.089.24
PBIT / Share (Rs.)-2.9414.1616.2010.098.35
PBT / Share (Rs.)-4.7612.3116.079.907.64
Net Profit / Share (Rs.)-4.179.3511.977.335.88
NP After MI And SOA / Share (Rs.)-4.179.3511.977.335.88
PBDIT Margin (%)1.1117.1219.0018.7633.57
PBIT Margin (%)-4.7714.1016.4915.6730.37
PBT Margin (%)-7.7312.2616.3615.3827.75
Net Profit Margin (%)-6.769.3112.1811.3921.38
NP After MI And SOA Margin (%)-6.769.3112.1811.3921.38
Return on Networth / Equity (%)-6.9414.2420.7615.8915.16
Return on Capital Employeed (%)-3.7716.6023.3718.8519.22
Return On Assets (%)-3.487.4310.889.449.02
Long Term Debt / Equity (X)0.250.240.140.100.05
Total Debt / Equity (X)0.540.490.330.180.22
Asset Turnover Ratio (%)0.500.851.060.890.00
Current Ratio (X)1.151.421.391.621.54
Quick Ratio (X)0.650.790.771.010.99
Inventory Turnover Ratio (X)1.552.353.182.810.00
Dividend Payout Ratio (NP) (%)-33.5814.9711.690.0017.00
Dividend Payout Ratio (CP) (%)-257.9611.319.690.0014.78
Earning Retention Ratio (%)133.5885.0388.310.0083.00
Cash Earning Retention Ratio (%)357.9688.6990.310.0085.22
Interest Coverage Ratio (X)0.376.6550.4527.4412.84
Interest Coverage Ratio (Post Tax) (X)-1.294.3332.7017.089.18
Enterprise Value (Cr.)2831.392761.813135.900.000.00
EV / Net Operating Revenue (X)1.811.081.260.000.00
EV / EBITDA (X)162.666.326.610.000.00
MarketCap / Net Operating Revenue (X)1.290.771.060.000.00
Retention Ratios (%)133.5885.0288.300.0082.99
Price / BV (X)1.321.181.810.000.00
Price / Net Operating Revenue (X)1.290.771.060.000.00
EarningsYield-0.050.120.110.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Meghmani Organics Ltd as of November 14, 2024 is: 60.57

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Meghmani Organics Ltd is Overvalued by 40.62% compared to the current share price 102.00

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Meghmani Organics Ltd as of November 14, 2024 is: 21.02

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Meghmani Organics Ltd is Overvalued by 79.39% compared to the current share price 102.00

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -65.30%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,361.67 cr) compared to borrowings (581.67 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (141.20 cr) and profit (238.20 cr) over the years.
  1. The stock has a low average ROCE of 11.20%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 134.80, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 147.40, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Meghmani Organics Ltd:
    1. Net Profit Margin: -6.76%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: -3.77% (Industry Average ROCE: 13.8%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: -6.94% (Industry Average ROE: 15.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -1.29
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.65
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 47.19)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.54
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Meghmani Organics Ltd. is a Public Limited Listed company incorporated on 15/10/2019 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24299GJ2019PLC110321 and registration number is 110321. Currently Company is involved in the business activities of Manufacture of dyes and pigments from any source in basic form or as concentrate. Company’s Total Operating Revenue is Rs. 2493.97 Cr. and Equity Capital is Rs. 25.43 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Agro Chemicals/Pesticides1st to 3rd Floor, Near Raj Bunglow, Near Safal Profitaire, Ahmedabad Gujarat 380015cs@meghmani.com
http://www.meghmani.com
Management
NamePosition Held
Mr. Ankit PatelChairman & Managing Director
Mr. Karana PatelExecutive Director
Mr. Darshan PatelExecutive Director
Mr. Maulik PatelNon Executive Director
Mr. Kaushal SoparkarNon Executive Director
Ms. Urvashi D ShahIndependent Director
Mr. Manubhai K PatelIndependent Director
Prof. (Dr) Ganapati YadavIndependent Director
Dr. Varesh Govindprasad SinhaIndependent Director
Mr. Nikunt RavalIndependent Director

FAQ

What is the latest intrinsic value of Meghmani Organics Ltd?

The latest intrinsic value of Meghmani Organics Ltd as on 14 November 2024 is ₹60.57, which is 40.62% lower than the current market price of ₹102.00.

What is the Market Cap of Meghmani Organics Ltd?

The Market Cap of Meghmani Organics Ltd is 2,592 Cr..

What is the current Stock Price of Meghmani Organics Ltd as on 14 November 2024?

The current stock price of Meghmani Organics Ltd as on 14 November 2024 is ₹102.

What is the High / Low of Meghmani Organics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Meghmani Organics Ltd stocks is 116/71.4.

What is the Stock P/E of Meghmani Organics Ltd?

The Stock P/E of Meghmani Organics Ltd is .

What is the Book Value of Meghmani Organics Ltd?

The Book Value of Meghmani Organics Ltd is 59.0.

What is the Dividend Yield of Meghmani Organics Ltd?

The Dividend Yield of Meghmani Organics Ltd is 0.00 %.

What is the ROCE of Meghmani Organics Ltd?

The ROCE of Meghmani Organics Ltd is 3.13 %.

What is the ROE of Meghmani Organics Ltd?

The ROE of Meghmani Organics Ltd is 6.71 %.

What is the Face Value of Meghmani Organics Ltd?

The Face Value of Meghmani Organics Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Meghmani Organics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE