Thread by @CAALOKJAIN_NIRC

#Meghmani Organics Share Analysis (#MOL)
(Compiled After Refering to Company Presentation, Annual Reports, Con-call Transcripts and various News Point. This is for Education Purpose Only)
1) LCP-140.60(02-05-2022)
2) 52WH-149.90(03-09-2021)
3) 52WL-80.75(24-11-2021)

4. EPS-7.33, PE-19.17, IPE-35.17, BV-52.69, No of shares-25.43Cr, FV-1, ROCE-19%
5. Q4FY22 results- Exceptional Results. Sale 838 Cr Vs 667 Cr in Dec21 and 481 Cr in Mar21. PAT 102.21 Cr Vs 68.38 Cr in Dec21 and Profit of 36.02 Cr in Mar21. Profit Jump By 183% YOY and 49% QOQ.

6.Full FY22 Performance- Revenue 2494 Cr (19% CAGR). EBITDA of 379 cr (22% CAGR). PAT of 308 cr (41% CAGR). EBITDA Margin 15.2%, Net Profit Margin 12.3%.
7.Shareholding-Promoter-49.41%, FII-1.25%, DII-0.04%, NII-49.29%.

8.Demerger of Finechem Business- into a separate listed entity Meghmani Finechem Ltd earlier.
9.Selected for PLI Scheme- Company selected in PLI Scheme for Production of Par Amino Phenol for Committed capacity of 13500 MT with commited investment of 55 Cr.

10.Strength-400+ customer. 3000+ distributors and dealers across India. Close to 80% of revenue derived from export market. Strong global presence in 70 countries. Global distribution network - direct presence with subsidiaries in US, Dubai & a representative office in China

11.Biggest Growth Driver-Acquisition of Kilburn Chemicals In Dec 2021 Completed the acquisition after making an upfront payment of Rs 131.8 cr. This acquisition will fast-track MOL's foray into Titanium Dioxide. The Existing Capacity of Kilburn is 16500 MT.

The Company anticipates doubling up its Titanium Dioxide (TiO2) capacity to 33,000 MTPA by Q1 FY24 by incurring an additional capex of INR 270 Crores. At normal capacity utilisation, the aforesaid plant is expected to contribute INR 650-700 Cr to MOL's topline on a full FY basis.

Titanium Dioxide (TiO2), a bright white pigment, has multiple industrial applications, including Paints, Plastics, Inks, Dyes, Paper and Cosmetics, etc. Presently Imports meet nearly 80% of India's Titanium Dioxide (TiO2) demand.

Key Synergy benefit of kilburn acquisition are Potential to cross sell the product to the existing clients. Enables access to new potential clients through the well established distribution network.

Business Verticle
1.Pigments Segment- Company is Amongst top 3 global Phthalocyanine based pigment. Currently having 14% Market share. This segment contributes 30% of Total Revenue. In FY22 this segment generated 755 cr Revenue with 9.3% EBITDA Margin.

Forayed into white pigments (TiO2) by Acquistion of Kilburn which will further increase revenues. Total Present Pigment capacity of 33180 TPA at 3 Plants. Ahemdabad Plant 3180 TPA which manufactures Pigment Green and AZO pigment.

Bharuch Plant 17400 TPA which manufactures CPC Blue, Alpha and Beta Blue. Dahej SEZ Plant 12600 TPA which manufactures CPC Blue, Alpha and Beta Blue

2.Titanium Dioxide (TiO2)- It is a naturally occurring white opaque mineral used a bright white pigment. Key raw materials are ilmenite ore and sulphuric acid. TiO2 is majorly available in two grades: Rutile Grade and Anatase Grade.

Organic Pigments growth is linked to end-user industries mainly printing inks, paints and coatings and textile industries. Industrial applications are in Paint, Coating, Plastic, Polymers, Ink, Dyes, Paper etc. and also used in sunscreens and cosmetics.

India’s total production capacity of Titanium Dioxide (TiO2) is 81,000 MTPA with 80% demand fulfilled by imports. Existing Capacity 16500 TPA and proposed expansion to 33000 TPA. Phase-1 Capex- 275 cr will lead to 350 cr Revenue and expected to be complete by Q3FY23.

Phase-2 Capex- 325 cr will lead to 750 cr Revenue and expected to be complete by Q3FY24. Expected EBITDA Margin of 22%

3.Agrochemicals Segment-Among Top 10 producers of pesticides in India. This segment contributes 70% of Total Revenue. In FY22 this segment generated 1739 cr Revenue with 20% EBITDA Margin. Major products – 2,4-D, Cypermethrin, Permethrin, Bifenthrin, Lambda cyhalothrin,

Profenophos and Chlorpyrifos. Completed project in FY21- Doubling 2,4-D Capacity to 21,600 TPA and New Formulation Plant. New Capex-New Multipurpose plant (MPP) at Dahej with capex of Rs 350 Cr (Q2 FY23). Total Present Agrochemical capacity of 51060 TPA at 3 Plants.

Panoli Plant 13500 TPA. Ankleshwar Plant 6840 TPA. Dahej SEZ Plant 30720 TPA.