Meghmani Organics given a All Time high breakout which means the stock is now at the price which was never seen before. (Definitely something is cooking)
Recently the stock had seen some correction due to the overall market situation and global issues but bounced back strongly from 50 ema backed with the good results posted from the company and when the management is also claiming to have a growth of 20% every year, the stock is poised to see levels much higher from here.
The price action already showed us the interest of investors and then recently touched the high of 60.
The promoters holding is high as 50% and the continuous reduction in debt will reduce the financial expenditure which will add to the eps. Overall, the company looks good for higher levels.
We are expecting the stock to touch levels of 70 in short term and 100+ levels in long term.
Technically stock is looking strong and should do well in days ahead.
Revenue up 17% at Rs 4,150 mn driven by strong exports growth of 26% and domestic revenue growth of 8%;
Exports contributing 54% to revenue
EBITDA up 22% as raw material cost as percentage of revenue declined from 56.9% to 52.9% while other cost as
a percentage of revenue increased from 19.2% to 22.5%
Interest outflow down 26% to Rs 107 mn compared to Rs 144 mn in Q1FY17 with reduced debt
Depreciation declined 9%
PAT grew 75% to Rs 329 mn; PAT margin at 7.9%
The investors report can be accessed here @ bse website.
Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”
Disclosure: It is safe to assume that i might have the above mentioned stocks in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments. This is not a Buy/Sell call but just meant for reader Education purpose.
This article is contributed by Prateek Dhuper on Sat Aug 12 2017 01:00:47 GMT+0530 (IST)
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