Meghmani Organics Ltd (MOL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Punjab Chemicals

India Pesticides

Dharmaj Crop

Best Agrolife

NACL Industries

Insecticid.India

Meghmani Organi.

Bhagiradha Chem.

Heranba Inds

Astec Lifescienc

Advance Agrolife

Why is Meghmani Organics Ltd ?

Weak Long Term Fundamental Strength with a -18.02% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.03% signifying low profitability per unit of shareholders funds

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.83% over the previous quarter and collectively hold 1.52% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.89% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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.

-31.0%

-0.77

40.18%

Sensex

4.77%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.26%

EBIT Growth (5y)

-18.02%

EBIT to Interest (avg)

12.28

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.99

Tax Ratio

55.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.52%

ROCE (avg)

7.62%

ROE (avg)

6.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.10

EV to EBIT

23.38

EV to EBITDA

11.05

EV to Capital Employed

1.06

EV to Sales

1.08

PEG Ratio

0.29

Dividend Yield

ROCE (Latest)

4.55%

ROE (Latest)

2.58%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

NET SALES(Latest six months)

At Rs 1,190.88 cr has Grown at 24.34%

PAT(Latest six months)

Higher at Rs 24.23 cr

ROCE(HY)

Highest at 7.30%

-11What is not working for the Company

INTEREST(Latest six months)

At Rs 53.25 cr has Grown at 65.37%

PBT LESS OI(Q)

At Rs -1.67 cr has Fallen at -539.5% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.80 times

NON-OPERATING INCOME(Q)

is 106.40 % of Profit Before Tax (PBT

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Here's what is working for Meghmani Organi.

Profit After Tax (PAT) - Quarterly

At Rs 11.55 cr has Grown at 145.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 4.71 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Latest six months

At Rs 1,190.88 cr has Grown at 24.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Meghmani Organi.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -1.67 cr has Fallen at -539.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 0.38 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Latest six months

At Rs 53.25 cr has Grown at 65.37%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 106.40 % 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

Debtors Turnover Ratio- Half Yearly

Lowest at 2.80 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 27.76 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income