Meghmani Organics is a potential multibagger

Leading chemical company diversified across products and geographies; exports to 75
countries servicing 400+ marquee clients
Invested ₹ ~5.6 bn in last 5 yrs; current capacity can ramp up revenue up to ₹ 20.0 bn
Leading global player in phthalocyanine pigment industry
§ ~7% global market share; amongst top 3 global blue pigment players
§ Servicing marquee clientele with strong presence and dealer network
spread across North America, South America, Asia & Europe
Agrochemicals product offering encompasses the entire value chain
§ Encompassing intermediate, technical grade & formulations (bulk &
branded)
§ Competitive advantage via 215 export registrations; 400 registrations in
pipeline; 247 CIB registrations; 27 registered trademarks
Basic Chemicals segment witnessing robust growth rate
§ Fourth largest Caustic-Chlorine capacity in India
§ Strategic facility location at Dahej – proximity to raw material and
customers
§ Grew at ~20% CAGR (FY11-15); contributing 26% to net sales in FY15

Approximately 57% of export sales (~80% in Pigments, ~70% in
Agrochemicals from exports. Basic Chemicals derives its revenue from
the domestic market)
§ Servicing 400+ customers in 75 countries worldwide
including China
§ Extensive network of 70 overseas distributors
§ Subsidiaries in the US, Europe, Indonesia and Dubai and
Representative Office in China
§ Warehouses in Belgium, Turkey, Russia, USA and Uruguay
§ Pan India presence through stockists, agents, distributors
& dealers in Branded Agro products

Meghmani plans to reduce debt by ₹ 2.25 bn by March 2017
§ The company also aims to achieve efficiency in working capital management through strengthening of
systems and processes

Historical financials – Profit & Loss summary
FY11 FY12 FY13 FY14 FY15
Net Sales 10,247 10,450 10,402 11,569 12,678
Other Operating Income 204 172 183 214 264
Revenue from Operations 10,451 10,622 10,585 11,783 12,942
Total Expenses 8,929 9,041 8,733 9,825 10,911
EBITDA 1,522 1,582 1,852 1,959 2,031
EBITDA Margin 14.9% 15.1% 17.8% 16.9% 16.0%
Depreciation 686 747 751 802 747
EBIT 835 835 1,101 1,156 1,284
Other Income 28 126 133 61 64
Finance Costs 579 735 643 676 746
Profit before tax and Exceptional Items 284 226 591 542 602
Exceptional Items/ Prior period items 58 - -9 -2
PBT 341 226 582 542 600
Tax expense 43 191 299 182 140
Profit after tax before minority interest 298 35 283 360 460
Extraordinary Item 5
Minority Interest and others -82 0 111 127 21
Reported PAT 380 35 172 228 439
PAT Margin 3.7% 0.3% 1.7% 2.0% 3.5%

 

Would like to share few more details from screener.com
Pros:
- Stock is trading at 0.99 times its book value
- Promoter's stake has increased
- Company has been maintaining a healthy dividend payout of 31.19%
Cons:
Company has delivered a poor growth of 9.66% over past five years.
- Company has a low return on equity of 5.58% for last 3 years.
- Contingent liabilities of Rs.175.49 Cr.
"Leading chemical company diversified across products and geographies; exports to 75
countries servicing 400+ marquee clients" - this sound interesting.

I think Dolly khanna is holding this in her portfolio.