Meghmani Organics Ltd

About the Company:

Meghmani Organics is a leading vertically-integrated Agrochemicals player with product offerings encompassing the entire value chain — intermediate, technical grade and formulations (bulk and branded).

Company operates in all 3 segments of the Chemical industry i.e., Pigments, Agrochemicals and Basic Chemicals.

Meghmani Organics is one of the largest manufacturers of Phthalocyanine-based pigments with a global market share of ~8% in volume terms.

Company has a global distribution network of 70 overseas distributors. Its direct presence (with subsidiaries in the US, Europe, Indonesia, and Dubai.

The Company also has warehouses in Belgium, Turkey, Russia, USA, and Uruguay.

At present company exports to 75 countries and are servicing 400+ marquee clients.

The Company’s relationship with its clients is sticky, with 90% business arising from repeat customers.

Company’s pigment products are used in multiple applications, including paints, plastics and printing inks.

Company’s pigments business enjoys strong global presence with exports accounting for ~68% of net sales,Customers comprise mainly MNCs, such as Flint Group, Akzo Nobel, DuPont, and PPG Industries.

Company is taking steps to becoming a global chemicals conglomerate with the start of a Rs.540 crores expansion project to be completed over the next 2-3years.

Also Watch (Detailed Analysis Inside this Video):

Positives for the Company:

• Experienced Management Team.
• In Agrochemicals business company is quickly ramping up the plant to optimum utilisation levels.
• Company has strong leadership position across business segments.
• Rs.540 crores capacity expansion underway for strong future growth.(MOL holds 57% stake in MFL, which is planning the Capex of Rs 5.4 bn)
• This is expected to be commissioned by March 2018, which will add around Rs.140 crores of revenue in the full year of operations.
• Company is Looking to double its revenues in the next five years.
• Consistent Dividend Payer.

Knowledge Corner: (Click on the Link)