A mega thread on
MEGHMANI FINECHEM LIMITED
Cmp ~ 708 Rs as on 25 Sep 2021
Mrkt Cap - 2944 Cr
Eps - 24.5
Roce ~ 16%
๐ป๐๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐ฉ๐๐๐๐ ๐ช๐๐๐๐๐๐๐ ๐๐ ๐ ๐๐๐๐๐ ๐๐ ๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐ช๐๐๐๐๐๐๐๐
1/n Thread๐
MEGHMANI FINECHEM LIMITED
Cmp ~ 708 Rs as on 25 Sep 2021
Mrkt Cap - 2944 Cr
Eps - 24.5
Roce ~ 16%
๐ป๐๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐ฉ๐๐๐๐ ๐ช๐๐๐๐๐๐๐ ๐๐ ๐ ๐๐๐๐๐ ๐๐ ๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐ช๐๐๐๐๐๐๐๐
1/n Thread๐
Meghmani Finechem Limited (MFL) founded in 2007, is
recognised as one of the leading
producers of ๐ช๐๐๐๐ ๐จ๐๐๐๐๐ ๐๐๐ ๐๐๐ ๐ ๐๐๐๐๐๐๐๐๐๐ with backward and forward
integration facilities.
2/n
recognised as one of the leading
producers of ๐ช๐๐๐๐ ๐จ๐๐๐๐๐ ๐๐๐ ๐๐๐ ๐ ๐๐๐๐๐๐๐๐๐๐ with backward and forward
integration facilities.
2/n
๐๐ก๐๐ญ ๐ข๐ฌ ๐๐ก๐ฅ๐จ๐ซ ๐๐ฅ๐ค๐๐ฅ๐ข?
๐ช๐๐๐๐-๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐ (๐ต๐๐ช๐), ๐๐๐๐๐ ๐๐๐๐๐ ๐๐๐ ๐ช๐๐๐๐๐๐๐, ๐ฏ๐๐ ๐๐๐๐๐ & ๐ช๐๐๐๐๐๐ ๐บ๐๐ ๐
๐ช๐๐๐๐-๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐ (๐ต๐๐ช๐), ๐๐๐๐๐ ๐๐๐๐๐ ๐๐๐ ๐ช๐๐๐๐๐๐๐, ๐ฏ๐๐ ๐๐๐๐๐ & ๐ช๐๐๐๐๐๐ ๐บ๐๐ ๐
Imp point to remember -
Power is the major cost for any chlor alkali producer.Any sharp rise in prices of coal will affect the margins of the company.
This can be offsetted by the rising demand and prices of caustic soda.
Power is the major cost for any chlor alkali producer.Any sharp rise in prices of coal will affect the margins of the company.
This can be offsetted by the rising demand and prices of caustic soda.
๐ช๐ต๐ฎ๐ ๐ฎ๐ฟ๐ฒ ๐๐ต๐ฒ ๐ฑ๐ฒ๐ฟ๐ถ๐๐ฎ๐๐ถ๐๐ฒ๐ ๐ผ๐ณ ๐๐ต๐น๐ผ๐ฟ ๐๐น๐ธ๐ฎ๐น๐ถ?
๐ป๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐ ๐๐๐๐๐ ๐๐ ๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐ ๐๐ ๐ช๐๐๐๐๐๐๐๐๐๐๐๐, ๐ฏ๐๐ ๐๐๐๐๐ ๐ท๐๐๐๐๐๐ ๐,๐ฌ๐ช๐ฏ,๐๐๐
๐ป๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐ ๐๐๐๐๐ ๐๐ ๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐ ๐๐ ๐ช๐๐๐๐๐๐๐๐๐๐๐๐, ๐ฏ๐๐ ๐๐๐๐๐ ๐ท๐๐๐๐๐๐ ๐,๐ฌ๐ช๐ฏ,๐๐๐
MFL is fully integrated and Major Products of the company include
๐Caustic soda
๐Chloromethanes (CMS)
๐Hydrogen Peroxide (H2O2)
Upcoming Expansions
๐Epichlorohydrin (ECH)
(To be commissioned by Q1 Fy23)
๐CPV
(To be commissioned by Q2Fy23)
๐Caustic soda
๐Chloromethanes (CMS)
๐Hydrogen Peroxide (H2O2)
Upcoming Expansions
๐Epichlorohydrin (ECH)
(To be commissioned by Q1 Fy23)
๐CPV
(To be commissioned by Q2Fy23)
Lets understand more about all of its Products and its Applications
๐๐๐ฎ๐ฌ๐ญ๐ข๐ ๐๐จ๐๐ -
MFL is the 4th largest Indian player in Caustic Soda with capacity of 3.15L TPA
The capacity of Caustic Soda will be expanded further to 4L TPA
End Use of Cautic soda๐
๐๐๐ฎ๐ฌ๐ญ๐ข๐ ๐๐จ๐๐ -
MFL is the 4th largest Indian player in Caustic Soda with capacity of 3.15L TPA
The capacity of Caustic Soda will be expanded further to 4L TPA
End Use of Cautic soda๐
๐๐ก๐ฅ๐จ๐ซ๐จ๐ฆ๐๐ญ๐ก๐๐ง๐๐ฌ-
Mfl has the 3rd largest capacity of
Chloromethanes at 50,000 TPA.
The Chloromethane plants produce
products like Methyl Chloride,
Methylene Dichloride, Chloroform &
Carbon Tetrachloride. Chloromethanes has found a variety of applications
Mfl has the 3rd largest capacity of
Chloromethanes at 50,000 TPA.
The Chloromethane plants produce
products like Methyl Chloride,
Methylene Dichloride, Chloroform &
Carbon Tetrachloride. Chloromethanes has found a variety of applications
๐๐ฒ๐๐ซ๐จ๐ ๐๐ง ๐๐๐ซ๐จ๐ฑ๐ข๐๐-
MFL has 3rd largest capacity of Hydrogen Peroxide at 60,000 TPA.
50% of Hydrogen Peroxide is extensively used by pulp and paper industry
MFL has 3rd largest capacity of Hydrogen Peroxide at 60,000 TPA.
50% of Hydrogen Peroxide is extensively used by pulp and paper industry
Upcoming Products On stream
๐๐ฉ๐ข๐๐ก๐ฅ๐จ๐ซ๐จ๐ก๐ฒ๐๐ซ๐ข๐ง(๐๐๐)
MFL will become the 1st manufacturer of ECH
It will be based on 100% renewable resources.
ECH project will possess
a capacity of 50,000 TPA.
ECH is key raw material for Epoxy resin used as construction chemicals
๐๐ฉ๐ข๐๐ก๐ฅ๐จ๐ซ๐จ๐ก๐ฒ๐๐ซ๐ข๐ง(๐๐๐)
MFL will become the 1st manufacturer of ECH
It will be based on 100% renewable resources.
ECH project will possess
a capacity of 50,000 TPA.
ECH is key raw material for Epoxy resin used as construction chemicals
๐๐ก๐ฅ๐จ๐ซ๐ข๐ง๐๐ญ๐๐ ๐๐จ๐ฅ๐ฒ๐ฏ๐ข๐ง๐ฒ๐ฅ ๐๐ก๐ฅ๐จ๐ซ๐ข๐๐ (CPVC)
MFL is coming up with 30,000 TPA of CPVC plant.
CPVC resin is the key raw material for heat resistant Pipes
CPVC demand is growing at a cagr of 13% and is expected to reach USD 5 Billon by 2027
MFL is coming up with 30,000 TPA of CPVC plant.
CPVC resin is the key raw material for heat resistant Pipes
CPVC demand is growing at a cagr of 13% and is expected to reach USD 5 Billon by 2027
Now,Lets Have a Look at key Fundametals of the company
Revenue has grown by 21% cagr for last 4 year
Ebitda grew by 16% Cagr
Company posted a Pat of 101 cr for Fy21
D/e stands at 0.80
Revenue has grown by 21% cagr for last 4 year
Ebitda grew by 16% Cagr
Company posted a Pat of 101 cr for Fy21
D/e stands at 0.80
Future Prospects
Company is coming up with huge capex for its ECH and CPVC plant.
Company is expected to grow its sales by 35% yoy and is expected to clock sales of 2000cr by Fy2024
By 2024, company's majority of its sales would come from its Value added derivative Products.
Company is coming up with huge capex for its ECH and CPVC plant.
Company is expected to grow its sales by 35% yoy and is expected to clock sales of 2000cr by Fy2024
By 2024, company's majority of its sales would come from its Value added derivative Products.
P&L and Balance sheet -
Currently,Long term debt stands at 528 cr which is expected to peak at 700 cr by FY23 and then may graduually reduced by 120 cr per annum through internal accurals.
Currently,Long term debt stands at 528 cr which is expected to peak at 700 cr by FY23 and then may graduually reduced by 120 cr per annum through internal accurals.
Conclusion~
๐By Fy2024,
Company may able to do sales of 2000 cr with Pat of 250 cr on conservative basis leading to an eps of 60 .
๐Going forward, company is one verge of transformation from a basic chemical to speciality chemical & expect it to get rerated.
๐By Fy2024,
Company may able to do sales of 2000 cr with Pat of 250 cr on conservative basis leading to an eps of 60 .
๐Going forward, company is one verge of transformation from a basic chemical to speciality chemical & expect it to get rerated.
๐Successful commision of ECH & CPVC will be key driver for growth.
๐ Beyond 2024, the company plans to venture into products for Pharmaceuticals & Agro Chemicals.
๐Overall, The company is poised to grow at Roce of 35% catering its products to all high growth industries like๐
๐ Beyond 2024, the company plans to venture into products for Pharmaceuticals & Agro Chemicals.
๐Overall, The company is poised to grow at Roce of 35% catering its products to all high growth industries like๐
Key Risk
๐ Volatility in Raw material cost like Coal, Salt,etc could affect profitablity
๐Slowdown in economy
๐Risk of growing debt levels
๐Delay in project completion
๐Competition from its peer group
๐ Volatility in Raw material cost like Coal, Salt,etc could affect profitablity
๐Slowdown in economy
๐Risk of growing debt levels
๐Delay in project completion
๐Competition from its peer group
Thats end to the thread of Meghmani finechem #Meghmani fincehem #mfl
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