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Meghmani Organics: Strong Turnaround in FY25, But Valuation Warrants Caution

Published May 10, 2025 16:53
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Meghmani Organics Limited posted an impressive financial recovery in FY25, led by a stronger product mix and improved capacity utilisation in its core segments. The chemicals and agrochemicals major reported a 26% year-on-year growth in Q4 revenue to INR 502.1 crore, while EBITDA for the quarter surged sixfold to INR 64.6 crore from INR 10.1 crore a year earlier.

The Crop Protection segment remained the key growth driver, with Q4 revenue rising 34% YoY to INR 369.7 crore and EBITDA jumping a staggering 343% to INR 61.4 crore. The Pigments segment also contributed positively, with revenue up 6% YoY to INR 132.4 crore and EBITDA improving by 137% to INR 8.2 crore.

For the full fiscal year FY25, Meghmani’s revenue stood at INR 2,003.9 crore, a 30% YoY jump from INR 1,539.9 crore in FY24. EBITDA for the year came in at INR 180.4 crore, sharply higher than INR 9.5 crore in the previous year. Most significantly, the company swung to a net profit of INR 66.4 crore, reversing a loss of INR 56.6 crore reported in FY24—a clear signal of operational turnaround.

Chairman and MD Ankit Patel attributed the strong performance to healthy volume growth, improved product mix, and self-sufficiency in the Crop Nutrition segment. He also highlighted plans to launch 2–3 new products in FY26 and expand into export markets to overcome pricing pressures, especially in Titanium Dioxide (TiO2) where antidumping duty on Chinese imports is expected to ease margin headwinds for domestic players.

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Despite the robust performance, investors must weigh the current stock price against its intrinsic value. According to InvestingPro’s Fair Value feature, the fair value of Meghmani Organics stands at INR 62.6, indicating a potential downside of 11.6% from the current market price of INR 70.8. This advanced valuation tool integrates multiple financial models to offer an accurate, real-time view of a company’s worth—helping investors avoid overpaying for future growth.

For those looking to make informed decisions in volatile sectors like chemicals and agrochemicals, InvestingPro offers unparalleled analytical depth, including real-time fair value estimates, financial health indicators, and segment-level insights.

Now is the perfect time to subscribe to InvestingPro, with discounts of up to 45% currently available. Elevate your investing game with smarter tools and sharper insights.

Read More: Here’s How to Find Deep Value in 52-Week-Low Stocks

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Meghmani Organics: Strong Turnaround in FY25, But Valuation Warrants Caution
 

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Kanhaiya Singh
Kanhaiya Singh May 12, 2025 1:02
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