Meghmani Finechem jumps 28% in two trading sessions and posts strong fourth quarter results

Shares of Meghmani Finechem hit a record high of Rs 1,469.55 as they rallied 14% on BSE in Tuesday’s intraday trading. The stock soared 28% in the past two trading days after the company reported strong operational and financial performance for the March quarter (Q4FY22). Over the past seven weeks, the stock of specialty chemicals has soared 91% from a level of Rs 771 on March 7, 2022.

In the fourth quarter, the company’s profit after tax (PAT) tripled to Rs 99 crore from Rs 33 crore in the year-ago quarter, driven by strong sales. Operating revenue increased by 93% to Rs 499 crore from Rs 259 crore in Q4FY21.

Earnings before interest, tax, depreciation and amortization (ebitda) increased by 118% to Rs 175 crore from Rs 80 crore in Q4FY21 and EBITDA margin increased by 405 basis points to 35%, despite strong inflationary pressure on raw materials. “Strong operational efficiencies and internal cost control measures have enabled the company to maintain margins even with inflationary pressure,” management said.

Management has announced a 5-year vision to achieve Rs 5,000 crore revenue by FY27 which would result in a CAGR of 25% from now. This growth will come from the higher contribution of revenues from value-added derivatives and specialty chemicals. The company has announced its entry into chlorotoluene and its value chain and will continue to gradually announce additional capital expenditures in the future, management said.

Meghmani Finechem 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 one of the leading manufacturers of caustic potash, chloromethanes and hydrogen peroxide.

The company is currently expanding its product base to include derivative and specialty chemicals such as epichlorohydrin (ECH), chlorinated polyvinyl chloride (CPVC) and chlorotoluene and its value chain, which are a key raw material for many multiple end-user industries, which are currently supported. by 100 percent import.

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