Markets
BSE See NSE See 36,553.60
-1,114.82 (-2.96%)

Meghmani Organics continue positive trend; price reaches pre-COVID levels

Pratik Shastri
/ Categories: DSIJ Mindshare, DSIJ News
Rate this article:
3.4
Meghmani Organics continue positive trend; price reaches pre-COVID levels

The shares of Meghmani Organics Ltd have surged handsomely since the historic fall in March 2020 and touched its pre-COVID price on August 13, 2020.

This rally in the stock price is despite the fact that the company had reported a drop in the quarterly sales from Q3FY20 to Q1FY21.

Its business activity in agrochemicals and chloralkali can be one of the reasons for investors’ interest in the scrip. The agrichemical companies have gained strong momentum in the recent times. Its categorisation in essential services and strong monsoon forecast worked as a twin booster for the companies in this sector. The agricultural business contributes 44 per cent of the total revenue of Meghmani Organics Ltd. On expected lines, the company reported a 13 per cent growth in the production of agrochemical products.

The other business, chloralkali also showed strong signs of recovery to report a 16 per cent YoY growth in the production. Products manufactured in this category have applications in pharma, agrochemicals, water disinfectants, soaps & detergents. All these products have seen robust demand despite the nationwide lockdown and the resultant slowdown.

Going ahead, the street would also take into consideration the commencement of 10,000 TPA agrochemical capacity in the third quarter of the current fiscal. The company expects Rs 200 revenue growth after these plants get operational. On the other hand, all the expansion plans in the alkali segment are expected to be done in the current quarter itself.

The stock price can be expected to take cues from these fundamental reasons. Going ahead, depending upon market sentiment and demand scenario, its price would further see traction.

Previous Article Gradual resumption of economic activity is likely to revive Blue Star
Next Article Wonderla Holidays launches second 'Wonder Kitchen' outlet

Please login or register to post comments.

DSIJ MINDSHARE

12345Last