Thread by @AdeptMarket

A Thread On Why I Am Really Bullish On Meghmani Organics Going Forward. Do give it a read for a good insight

~ Having 14% global market share in pigments
~ Co. is amongst top 3 global phthalocyanine based pigment players
~ Co. Is rapidly expanding to newer geographies.

Contd.

https://twitter.com/AdeptMarket/status/1521163800921067521

#MOL Meghmani Organics

~ Co. is amongst top 10 producers of pesticides in India
~ Doubled it’s capacity in Agro chemicals division of 2,4-D to 21.6K TPA, and has commissioned new formulation unit
~ Setting up a new multi purpose plant in Dahej

Contd.

#MOL Meghmani Organics Ltd

~ Having a good EBITDA margin of 15.2%
~ Debt To Equity Ratio which is very meagre at 0.34X
~ Good ROCE & ROE of 20% and 23.6% respectively
~ Consistent revenue growth, improved profitability & return ratios

Contd.

#MOL Meghmani Organics Ltd

~ Amongst top 3 global pigment players
~ Rich experience of many decades in chemical sector among the founding members of the company.
~ Highly respected name in global chemical industry

Contd.

#MOL Meghmani Organics Ltd

~ 400+ customer base in pigments & agro-chemicals across diverse industries
~ New capex in agrochemical will further provide significant scope for growth over coming years
~ Acquistion of Kilburn chemicals will fasten the growth in EBITDA

Contd.

#MOL Meghmani Organics Ltd

~ Debt to equity ratio improved from 0.60X to 0.34X now
~ Has forayed into a new segment of Titanium Dioxide
~ Strong global presence in 70 countries
~ Co. is doing a new Capex of Rs
3.5 bn

Contd.

#MOL Meghmani Organics Ltd

~ Co. continues to focus on increasing domestic presence and capture market share
~ Expand products portfolio to penetrate into the growing domestic market

Contd.

#MOL Meghmani Organics Ltd

~ To Top It All,
Co. witnessed a sharp increase in Operating Profit - thereby exhibiting a Growth of 71% QOQ and 282% YOY
~ Trading at a big discount in comparison to peers
Trades 1.4X sales being a chemical company

#MOL Meghmani Organics

~ If you see, most of the other chemical companies are trading at 20+ pe, whereas Meghmani Organics is trading at a forward pe of 8 (which is highly undervalued) - So I see a big valuation gap over here, it could be a big chemical multibagger in future

#MOL Meghmani Organics

~ Market Cap - 3577 cr
~ FY22 Sales - 2500 cr
~ ROCE - 23.6%
~ Going For A Capex, which will further increase revenue
~ Trading at a huge undervaluation (at a forward pe of 8)
~ Trading 1.4X Sales
~ Excellent Return Ratios

I am v bullish on it 🔥