Why is Meghmani Organics Ltd ?
1
Weak Long Term Fundamental Strength with a -24.33% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 7.13% signifying low profitability per unit of shareholders funds
2
Negative results in Mar 26
- OPERATING PROFIT TO INTEREST(Q) Lowest at 0.96 times
- PAT(Q) At Rs 8.03 cr has Fallen at -20.7% (vs previous 4Q average)
- OPERATING PROFIT TO NET SALES(Q) Lowest at 4.16%
3
Stock is technically in a Mildly Bearish range
- The technical trend has deteriorated from Sideways on 11-May-26 and has generated -10.02% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pesticides & Agrochemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Meghmani Organi. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Meghmani Organi.
-43.81%
-0.79
46.20%
Sensex
-4.95%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
5.84%
EBIT Growth (5y)
-24.33%
EBIT to Interest (avg)
7.26
Debt to EBITDA (avg)
1.25
Net Debt to Equity (avg)
0.45
Sales to Capital Employed (avg)
0.97
Tax Ratio
53.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.39%
ROCE (avg)
6.11%
ROE (avg)
7.13%
Valuation Key Factors 
Factor
Value
P/E Ratio
44
Industry P/E
20
Price to Book Value
0.83
EV to EBIT
34.36
EV to EBITDA
11.20
EV to Capital Employed
0.88
EV to Sales
0.91
PEG Ratio
0.12
Dividend Yield
NA
ROCE (Latest)
2.56%
ROE (Latest)
1.86%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
4What is working for the Company
PAT(9M)
At Rs 16.05 cr has Grown at 160.55%
-21What is not working for the Company
OPERATING PROFIT TO INTEREST(Q)
Lowest at 0.96 times
PAT(Q)
At Rs 8.03 cr has Fallen at -20.7% (vs previous 4Q average
OPERATING PROFIT TO NET SALES(Q)
Lowest at 4.16%
PBT LESS OI(Q)
Lowest at Rs -30.09 cr.
NET SALES(Q)
Lowest at Rs 474.34 cr
PBDIT(Q)
Lowest at Rs 19.72 cr.
NON-OPERATING INCOME(Q)
is 520.84 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Meghmani Organi.
Operating Profit to Interest - Quarterly
Lowest at 0.96 times and Fallen
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -30.09 cr has Fallen at -1071.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 3.10 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 8.03 cr has Fallen at -20.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 10.13 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 474.34 cr has Fallen at -15.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 563.27 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 4.16% and Fallen
each quarter in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -30.09 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 474.34 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 19.72 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Non Operating Income - Quarterly
is 520.84 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 37.24 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income