Epigral (formally known as Meghmani Finechem) is a chlor alkali product mfr (like caustic soda, chlorine, chloromethanes, etc) but is shifting to derivatives & specialty chemical products which will help them manage the cyclicality issues.
Mangement has guided for 20% volume growth for next 5 years, and is targeting mainly domestic customers. Few of the products are industry first in India. Further, government has extended the antidumping duty on CPVC / ECH for next 5 years which will help them in maintaing margins. Have guided for aggressive CAPEX of 700cr in next 1-2 years & recently raised funds through QIP.
Summary:
- Market Cap: 8000cr
- Sales: 2000cr
- Trailing PE: 28x
- ROCE: 28% (without CWIP assets); company has focus to maintain 25% ROCE for future CAPEX
- Guided for next 5 year volume CAGR of 20%
- Pricing support + Operating leverage, if any would be additional
To be noted, that there was a transaction in 2018 for buying out stake of the company by promoter, which investor believes was not favorable for minority shareholder; Mgmt has accepted that in one of the interview; I believe management and company do evolve over time but important that we we know this factor before making any investment
Latest IR presentation: https://www.bseindia.com/xml-data/corpfiling/AttachHis/af7f27ab-10d5-43ec-9400-a6ddaffbf6c9.pdf
Thread link: Meghmani Finechem - Underrated multibagger?