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Epigral
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Meghmani Finechem Limited was incorporated in 2007 as a subsidiary of Meghmani organics ltd, under the provisions of Companies Act, 1956. The Company at present is primarily engaged in manufacturing and selling of Chlor Alkali & its Derivatives. The Company is also engaged in Trading of Agrochemical products.
The Hon'ble National Company Law Tribunal ('NCLT') Ahmedabad Bench vide its order dated 3 May 2021 (the 'Order'), has approved the Scheme of Arrangement ('the Scheme') to demerge the Agrochemicals and Pigments Division of Meghmani Organics Limited ('MOL') along with its investment in Optionally Convertible Redeemable Preference Shares ('OCRPS') of Meghmani Finechem Limited ('MFL') and transferred to the Company as a going concern. The certified true copy of the Order issued by NCLT Ahmedabad Bench on 05th May, 2021 filed with The Ministry of Corporate Affairs (the 'MCA') Registrar of Companies ('ROC') Gujarat, Dadra, Nagar and Haveli on 10th May, 2021. The Scheme is effective from 10th May, 2021. By this Meghmani Finechem Limited was demerged from Meghmani Organics in FY 2020-21 to empower the Company grow its Chlor-Alkali business. The demerged Company is now being driven by the second generation of the promoter family that came on the Board of the Company in 2016. The Company's Chlor-Alkali business was commissioned in 2009, growing from an installed capacity of 1,88,000 TPA in 2015 to 3,15,000 TPA at the close of FY 2020-21. The Company is now among the leading players in India's chlor alkali industry.
The Company grew its business following the commissioning of new plants (Caustic Soda, Hydrogen Peroxide and the 36 MW Captive Power Plant). The timely commissioning of the plants represented the faith of the management in the long-term potential of the sector and country.
The Caustic Soda capacity was expanded by 1,27,000 TPA to 2,94,000 TPA and commissioned in June 2020. The Captive Power Plant capacity was increased by 36 MW to 96 MW, commissioned in June 2020. The Company commissioned a 60,000 TPA Hydrogen Peroxide plant in July 2020. The complement of these manufacturing capacities will broadbase the Company's manufacturing foundation, strengthen integration, moderate the cost structure and provide a platform for value-addition. The payback from these investments is likely to be recovered in 4-5 years, validating the Company's commitment to profitable growth.
During the year under review 2020-21, the Company announced the implementation of a manufacturing facility for Epichlorohydrin (ECH) and Chlorinated Polyvinyl Chloride (CPVC) which are expected to add attractively to the Company's volumes and profitability across the future. The ECH project will be the first time that the product will be manufactured in India. The 50,000 TPA facility will be based on glycerin feedstock that is obtained from 100% renewable resources, addressing the need for cost-effectiveness and moderated carbon footprint. The project is likely to be commissioned during the first quarter of the next financial year. The CPVC Resin project of 30,000 TPA at a cost of H190 Cr is likely to be commissioned in the second quarter of FY 2022-23.
Epigral share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Epigral indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Epigral is valued compared to its competitors.
Epigral PE ratio helps investors understand what is the market value of each stock compared to Epigral 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Epigral evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Epigral generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Epigral in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Epigral shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Epigral compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Epigral over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Epigral helps investors get an insight into when they can enter or exit the stock. Key components of Epigral Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Epigral shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Epigral ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Epigral provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Epigral highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Epigral .
The balance sheet presents a snapshot of Epigral ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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