Buzzing Stock: Only buyers in Meghmani Finechem

Specialty Chemicals company Meghmani Finechem Limited (MFL) stock which got listed on the stock exchanges on 18th August 2021, hit upper circuit on 5th consecutive trading day today. On BSE, the stock hit Rs 492.95 per share on BSE, as against the listing price of Rs 405.65 per share, an increase of 21.5 per cent. 

The company recently announced its 1st set of results as a listed entity. The highlights of the results are: 

·  Revenues 111 per cent higher YoY at ₹ 290 Cr, driven by higher sales of Chlor-Alkali (up 92per cent) and its Derivatives (up 170 per cent) 

·  On YoY basis, EBITDA margin increased by 190 bps to 31.9 per cent; absolute EBITDA increased by 124 per cent at ₹ 92 Cr in Q1FY22. 

· On YoY basis, PAT increased by 107 per cent to ₹ 37 Cr and PAT margin maintained at 12.7 per cent 

· Derivative (CMS and H2O2) segment contributed 32 per cent to revenue from operations in Q1FY22 compared to 25 per cent in Q1FY21 

·  In Q1FY22, ROCE per cent improved to 22.3 per cent and ROE improved to 24.8 per cent.

Meghmani Finechem Limited (“MFL”), incorporated in 2007, is a leading manufacturer of Chlor-alkali products and value-added derivatives. The company is India’s 4th largest manufacturer of Caustic Soda, Chlorine and Hydrogen and a leading manufacturer of Caustic Potash Chloromethanes and Hydrogen Peroxide. 

MFL is now expanding its product base to include value added derivative products like Epichlorohydrin (ECH) and Chlorinated Polyvinyl Chloride (CPVC), which are a key raw material for multiple end user industries but are currently fully imported.