Meghmani Organics up 3 per cent on adding herbicide capacity

Meghmani Organics, the manufacturer of crop protection chemicals, is installing additional capacity of 2,4-D herbicide at its existing manufacturing facility at Dahej.

The company is going to expand its existing 2,4-D capacity by 10,800 MTPA, leading to a total capacity of 20,400 MTPA for the herbicide. 2,4-D is a widely used and environmental-friendly herbicide and one of the top 10 most commonly used in the agricultural sector.

This expansion will cost nearly Rs. 127 crore and is expected to be commercialised by June 2020. The project will be funded via internal accruals and term loan. The additional capacity is expected to generate revenue of around Rs. 200 crore on becoming fully operational.

In the recent quarter Q4FY19, the company posted 18 per cent yoy jump in revenue and 33 per cent yoy jump in profit. Its revenue mix stood at Basic Chemical (42 per cent), Pigment (30 per cent) and Agro Chemical (28 per cent).

At 11:32 hours, the stock of Meghmani Organics was trading at Rs. 71.70, up by 1.30 points or 1.85 per cent from its previous closing of Rs. 70.40 on the BSE. The scrip opened at Rs. 70.40 and has touched a high and low of Rs. 73.00 and Rs. 70.10 respectively. The stock had hit 52 week high of Rs. 100.50 on May 29, 2018 and 52 week low of Rs. 42.10 on February 6, 2019.