Meghmani Organics Ltd.(Old) share price target

Derivative product launches to support next leg of growth

Moreover, company is embarking on mega expansion plans at a capex of `1000-1100 crore towards expansion of chloralkali, hydrogen peroxide and ECH units along with expansions in agrochemical business and set up dedicated production facility for chloromethane which will drive the trajectory of earnings going ahead. Capital structure should improve further over the medium term as benefits of capex accrue to the business. While the group has made progress on the large expansion plans, successful commercialization of remaining projects and ramp up of the...

Meghmani Organics Limited, a 6000 million Rupees company is one of the largest producers of color pigment in the world. Sound fundamentals, outstanding export performance, strong presence in the domestic market and a focused management team has seen Megmani Organics grow at a compounded annual growth rate of 17% and profits 10% over the past 3 years. Meghmani is also one of the largest producers of pesticides in India. More than 80% of the company's pigment products and over 50% of...

chemicals (+42% yoy) and Pigments (+7%). Basic Chemicals (+4% yoy) saw muted growth due to ~22 days production disruption on synchronisation of the new KOH plant with existing utilities. EBITDA margin was 170bps above expectations at 20.8% on better operatingperformanceinPigments(ledbylowerinputcosts),resultingin67%yoygrowthin...

9 Lower than expected depreciation/interest (due to delayed commissioning of caustic plantinQ1FY17)resultedin10%outperformanceinPAT. 9 DebtreductionofRs630mninFY16(vsestimated470mn)....

Gujarat), captive power plant, and its usage of latest membranecell technology' from AsahiKaseiChemicalCorporation,Japan.Ithasrecentlyundertakenabrownfieldexpansion ofcausticpotash(21,000tonnes)withaminimalinvestmentofRs650mn(internalaccruals)....