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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Meghmani Organics Ltd

About the Company - Meghmani Organics Ltd

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 380015ir@meghmani.com
http://www.meghmani.com
Management
NamePosition Held
Mr. Jayanti PatelExecutive Chairman
Mr. Ashish SoparkarManaging Director
Mr. Natwarlal PatelManaging Director
Mr. Ramesh PatelExecutive Director
Mr. Anand PatelExecutive Director
Ms. Urvashi D ShahIndependent Director
Mr. Manubhai K PatelIndependent Director
Prof. (Dr) Ganapati YadavIndependent Director
Dr. Varesh Govindprasad SinhaInd. Non-Executive Director
Mr. Shalin Niranjanbhai MehtaInd. Non-Executive Director

Meghmani Organics Ltd. Share Price Update

Share PriceValue
Today₹82.27
Previous Day₹79.15

Basic Stock Data of Meghmani Organics Ltd

Market Cap 2,522 Cr.
Current Price 99.2
High / Low102/71.7
Stock P/E
Book Value 62.3
Dividend Yield1.41 %
ROCE16.1 %
ROE14.2 %
Face Value 1.00

Data Source: screener.in

Competitors of Meghmani Organics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sharda Cropchem Ltd 3,288 Cr. 364580/36237.7 2321.65 %20.8 %15.9 % 10.0
Phyto Chem (India) Ltd 16.8 Cr. 39.055.6/25.8 20.20.00 %7.55 %1.90 % 10.0
UPL Ltd 36,847 Cr. 491760/452 3852.02 %14.3 %13.4 % 2.00
Adarsh Plant Protect Ltd 28.6 Cr. 28.933.5/15.289.4 1.080.00 %5.44 %15.6 % 10.0
Sumitomo Chemical India Ltd 18,778 Cr. 376476/37056.4 50.60.32 %30.2 %23.4 % 10.0
Industry Average20.48 Cr259.7836.7137.780.8%15.66%14.04%8.4

Meghmani Organics Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales427448463498548640812783646549574426379
Expenses325357428410470562678652567497496448371
Operating Profit1019035887878134132785378-228
OPM %24%20%8%18%14%12%16%17%12%10%14%-5%2%
Other Income110182821262738262427712
Interest212-99-4-379-34316413
Depreciation12121415151517181818232423
Profit before tax887648928893136142891567-43-16
Tax %26%26%25%25%26%26%25%23%25%46%19%20%3%
Net Profit66563669656810210966854-34-15
EPS in Rs13,110.0011,180.007,206.002.702.572.694.024.292.600.332.13-1.36-0.60

Meghmani Organics Ltd Quarterly Chart

Meghmani Organics Ltd Profit & Loss

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%

Meghmani Organics Ltd Profit & Loss Yearly Chart

Adarsh Plant Protect Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:54%
TTM:-38%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:37%
TTM:-117%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:-13%
Return on Equity
10 Years:%
5 Years:%
3 Years:18%
Last Year:14%

Meghmani Organics Ltd Balance Sheet

MonthMar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2525252525
Reserves9611,1481,4411,6441,559
Borrowings264268499824854
Other Liabilities407533832705499
Total Liabilities1,6571,9742,7983,1982,937
Fixed Assets4816349111,1661,149
CWIP101112188356461
Investments191304211183167
Other Assets8859241,4871,4941,161
Total Assets1,6571,9742,7983,1982,937

Meghmani Organics Ltd Reserves and Borrowings Chart

Meghmani Organics Ltd Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2233365204
Cash from Investing Activity 13-307-133-418
Cash from Financing Activity -26-1458234
Net Cash Flow812-1021

Meghmani Organics Ltd Financial Efficiency Indicators

MonthMar 2020Mar 2021Mar 2022Mar 2023
Debtor Days241927975
Inventory Days271152161158
Days Payable209137144108
Cash Conversion Cycle30210696124
Working Capital Days2398999113
ROCE %19%24%16%

Meghmani Organics Ltd Financial Efficiency Indicators Chart

Meghmani Organics Ltd Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters51.51%49.36%49.41%49.29%49.37%49.37%49.48%49.50%49.32%
FIIs1.34%1.25%1.25%1.44%1.64%1.57%1.53%1.50%1.34%
DIIs0.00%0.00%0.00%0.00%0.08%0.34%0.45%0.45%0.61%
Government0.00%0.00%0.04%0.05%0.05%0.05%0.05%0.04%0.04%
Public47.14%49.38%49.29%49.23%48.87%48.69%48.50%48.51%48.69%
No. of Shareholders1,18,9781,26,6141,27,3061,29,4061,30,9921,28,5071,27,1981,31,3361,40,672

Meghmani Organics Ltd Shareholding Pattern Chart

No. of Meghmani Organics Ltd Shareholders

Meghmani Organics Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund1407450.191.06
Groww Nifty Total Market Index Fund3690.010

Meghmani Organics Ltd ROCE Trend

Meghmani Organics Ltd EPS Trend

Meghmani Organics Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.00
Basic EPS (Rs.)9.3511.977.335.88
Diluted EPS (Rs.)9.3511.977.335.88
Cash EPS (Rs.)12.3814.439.336.76
Book Value[Excl.RevalReserv]/Share (Rs.)65.6457.6546.1338.79
Book Value[Incl.RevalReserv]/Share (Rs.)65.6457.6546.1338.79
Revenue From Operations / Share (Rs.)100.3798.2464.3627.51
PBDIT / Share (Rs.)17.1918.6712.089.24
PBIT / Share (Rs.)14.1616.2010.098.35
PBT / Share (Rs.)12.3116.079.907.64
Net Profit / Share (Rs.)9.3511.977.335.88
NP After MI And SOA / Share (Rs.)9.3511.977.335.88
PBDIT Margin (%)17.1219.0018.7633.57
PBIT Margin (%)14.1016.4915.6730.37
PBT Margin (%)12.2616.3615.3827.75
Net Profit Margin (%)9.3112.1811.3921.38
NP After MI And SOA Margin (%)9.3112.1811.3921.38
Return on Networth / Equity (%)14.2420.7615.8915.16
Return on Capital Employeed (%)16.6023.3718.8519.22
Return On Assets (%)7.4310.889.449.02
Long Term Debt / Equity (X)0.240.140.100.05
Total Debt / Equity (X)0.490.330.180.22
Asset Turnover Ratio (%)0.881.060.890.00
Current Ratio (X)1.421.391.621.54
Quick Ratio (X)0.790.771.010.99
Inventory Turnover Ratio (X)2.423.182.810.00
Dividend Payout Ratio (NP) (%)14.9711.690.0017.00
Dividend Payout Ratio (CP) (%)11.319.690.0014.78
Earning Retention Ratio (%)85.0388.310.0083.00
Cash Earning Retention Ratio (%)88.6990.310.0085.22
Interest Coverage Ratio (X)6.6550.4527.4412.84
Interest Coverage Ratio (Post Tax) (X)4.3332.7017.089.18
Enterprise Value (Cr.)2761.813135.900.000.00
EV / Net Operating Revenue (X)1.081.260.000.00
EV / EBITDA (X)6.326.610.000.00
MarketCap / Net Operating Revenue (X)0.771.060.000.00
Retention Ratios (%)85.0288.300.0082.99
Price / BV (X)1.181.810.000.00
Price / Net Operating Revenue (X)0.771.060.000.00
EarningsYield0.120.110.000.00

Meghmani Organics Ltd Profitability Ratios (%)

Meghmani Organics Ltd Liquidity Ratios

Meghmani Organics Ltd Liquidity Ratios (%)

Meghmani Organics Ltd Interest Coverage Ratios (%)

Meghmani Organics Ltd Valuation Ratios

Fair Value of Meghmani Organics Ltd Stock

Fair Value: ₹134.57

The stock is undervalued by 35.66% compared to the current price ₹99.2

*Investments are subject to market risks

Strength and Weakness of Meghmani Organics Ltd Stock

StrengthWeakness
  1. The company has higher reserves (1,350.60 cr) compared to borrowings (541.80 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 is trading at a high valuation with an average P/B ratio of 12.20 and average Dividend Yield of 19.16%.
  2. The stock has a low average ROCE of 14.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 135.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 157.00, which may not be favorable.

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