This chemical stock hits upper circuit for 6th consecutive session after listing

Specialty Chemicals company Meghmani Finechem Limited (MFL) stock, which got listed on the stock exchanges on 18th August 2021 after its demerger from its parent company Meghmani Organics, hit upper circuit for 6th consecutive trade session today. The chemical stock has hit 5 per cent upper circuit today as well hitting ₹517.55 per stock levels on BSE and ₹518.60 per stock mark on NSE — yielding around 27.60 per cent to its share holders post-listing.

The company recently announced its 1st set of results as a listed entity. In this result, the company management reported 111 per cent Y-o-Y (Year-on-Year) growth in revenues, which was mainly driven by higher sales of Chlor-Alkali (up 92 per cent) and its Derivatives (up 170 per cent). The company also reported improvement in Return on Equity (ROE) by 24.80 per cent. It also reported improvement in its ROCE (Return in Capital Employed) by around 22.30 per cent. On Y-o-Y basis, EBITDA margin of the company increased by 190 bps to 31.9 per cent while absolute EBITDA increased by 124 per cent at ₹92 crore in Q1FY22.

Meghmani Finechem shares were listed on both NSE and BSE on 18th August 2021 after the demerger from its parent organisation Meghmani Organics Limited. While announcing the demerger plans in March 2021, company management had said that the move will unlock value for existing shareholders.

After demerger from its parent organisation, Meghmani Finechem Limited is now a leading manufacturer of Chlor-alkali products and value-added derivatives. The company has state of the art manufacturing facilities in Gujarat, Dahej – a leading PCPIR region in the country. It is India’s 4th largest manufacturer of Caustic Soda, Chlorine and Hydrogen and a leading manufacturer of Caustic Potash Chloromethanes and Hydrogen Peroxide.

MFL is now expanding its product base to include value added derivative products like Epichlorohydrin (ECH) and Chlorinated Polyvinyl Chloride (CPVC), which are a key raw material for multiple end user industries but are currently fully imported. The company is focused on sustainable value creation for all its stakeholders and has recently been awarded with the Responsible Care certificate.