Meghmani Organics Ltd


(PE_Ratio) #109

Though the percentage went down, the number of shares went up.


(duranvskp) #110

It is because the Shares underlying Depository Receipts has decreased from 1,41,78,690 (Dec 2017) to 1,36,23,540 (Mar 2018) which correspondingly increased the shares available for public from 11,89,06,376 (Dec 2017) to 11,94,09,507 (March 2018) by the same quantity. As a causality the promoter share holding percentage has taken a dip marginally although the shares they held cumulatively has increased slightly on a quarter on quarter basis.

On a side note these deposity receipt shares are held by DBS (Nominees) Private Limited as per below link:
https://www.bseindia.com/corporates/shpNonProPublic.aspx?scripcd=532865&qtrid=97.00&QtrName=March%202018

Since I don’t have clue of the Accountancy and Jargon associated with this:

  1. What are Depository repository shares and does this mean Development Bank of Singapore (https://en.wikipedia.org/wiki/DBS_Bank) holds these shares on behalf of Foreign Portfolio investors from Singapore?

  2. Is this a good sign that they are offloading such huge quantity of shares quarter on quarter? To add to this the number of shares held under DR are getting reduced significantly over the years 3,74,33,450 shares (March 2016) to 1,36,23,540 shares (March 2018).

  3. One more thing I noticed is that Individual investors with share capital upto Rs. 2 Lacs (Retail Investors) share holding is 28.47 percentage as on March 2018 and this has increased significantly over the years from 5,33,12,495 shares (March 2016) to 6,85,23,028 shares (March 2018). Is this a good sign?


(James Sebastian) #111

Please share the link of this screenshot and this gives neat way to visualize changes


(Rushikesh Kanthamani) #112

@duranvskp
Thanx for the clarification for the Promoter shareholding and increase in shares, I too dont have any idea about Depository repository shares, but I personally dont feel any problem with the offloading taking place as long as promoters are buying the stake. Your point no 2 and 3 are interlinked according to me, as the off loading of 2.38cr shares(3.74 - 1.36 cr shares) by DBS as mentioned by you, which has increased the shareholding by retail segment by 1.52cr shares and HNI’s by the remaining 0.86cr shares. Which according to me is fine, no problem from this front as interest from HNI’s can also be seen, which is good sign.
Yes we need to dig deeper so as to why DBS is offloading, it might be profit booking as this stock ran recently, but lets find it out once n for all, need comments of experienced ppl on this front.


(anisingh) #113

Well thanks. And if you just throw some light on MOL business model. Like are they having Cyclical business or secular growth business?


(duranvskp) #114

The percentages are always relative.

Meghmani Promoter share holding in absolute numbers:

12,12,81,164 shares - March 2018 out of total 25,43,14,211 shares which comes down to 47.69%
(https://www.bseindia.com/corporates/shpSecurities.aspx?scripcd=532865&qtrid=97.00&Flag=New)

12,40,47,350 shares - September 2007 out of total 25,43,14,211 shares which comes down to 48.78%
(https://www.bseindia.com/corporates/ShareholdingPattern.aspx?scripcd=532865&flag_qtr=1&qtrid=55.00&Flag=New)

The promoter shares has reduced by marginal 1.09 % out of total shares in all these 11 years.


(S_Banerjee) #115

Can anybody please mention the expansion plan they are in pipeline and the percentage of completion or the status of it.


(..pd..) #116


(yudiagg) #117

Unable to download the report please.


(Raj A A) #118


Above is the link for the RPT.


(..pd..) #119


(Rushikesh Kanthamani) #120

Great news for for every investors of Megmani organics, Meghmani organics private limited(MAPL) a wholly owned subsidy of MOL has bought 24.7%(Entire stake of IFC in Meghmani Finchem and gave IFC a total exit) which is high margin business, hence huge opportunity in future, very positive news for the company and an important step for the company’s future.
http://www.bseindia.com/xml-data/corpfiling/AttachLive/034f0edb-3a08-4d56-a6b7-6c6d1f085ff8.pdf


(kush.pawan) #121

Please find attached the full research report on Meghmani Organics, from Stewart & Mackertich.
The future prospectus looks very good.

SMIFS_Research_Report-Meghmani Organics Ltd.pdf (986.2 KB)

Disclaimer: Invested at an average price of 72 Rs for very long term.


(NiveshakNiti) #123

Hi rushikesh,

Thanks for sharing this attachment. Could you please share the navigation for this report on bseinida website.

Regards


(PE_Ratio) #124

Previously MOL held 57% stake in MFL. Now an additional 24.97%, thereby taking the total stake in MFL to 81.97%.


(yudiagg) #125

kush.pawan http://forum.valuepickr.com/u/kush.pawan - Thanks a lot for
sharing the full report.

Disc - Not invested at present but planning to invest based upon the report.


(Rushikesh Kanthamani) #126

Here is the bse link
https://www.bseindia.com/corporates/ann.aspx?scrip=532865&dur=A&expandable=0


(Aneeshraj) #128

It’s very good news. But How they get money to buy additional stake? They borrowed or From internal profit? That means Q4 will get good numbers?
Anyone please share your view about this?

Disclaimer : Invested.


(AbhijitMani) #129

Correct me if I am wrong here,
Will the stake increase have any positive impact on its Financials? ( Did they have to pay IFC any royalties previously and now there is no need?)
Or is this just a sentiment booster where the promoter has increased control of this division?
Also,I couldn’t see any info on how this stake acquisition was funded?
disc: invested at 105 levels since last few months,looking to add at lower levels.
Regards,
Abhijit.


(Mayank Narula) #130

Most probably, they have done it through the cash accrual of MOL. If that is the case, then it is EPS accretive for the company.

For 9months FY-18, total profit was 160 crs, out of which 40 crs is attributed to non-controlling interest, which reflects that more than 50% profit is coming from Meghmani Finechem.

I think it’s a very positive news for the existing shareholders. If we assume same profit of ~200 crs for FY’19, PE stands to revise from 15 to 12, assuming there is no equity dilution. Please correct if I am wrong.