Check Before You Invest : Meghmani Organics Ltd

Q: Which industry/sub-sector does Meghmani Organics Ltd belong to?

Meghmani Organics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.

Q: Is Meghmani Organics Ltd a good quality company?

Meghmani Organics Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Meghmani Organics Ltd undervalued or overvalued?

Meghmani Organics Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 9.91, Historic Median: 9.60. Price to Book, Current: 0.71, Historic Median: 1.40. Price to Sales, Current: 0.59, Historic Median: 1.13. EV to EBITDA, Current: 5.44, Historic Median: 9.63

Q: Is Meghmani Organics Ltd a good buy now?

Meghmani Organics Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Meghmani Organics Ltd?

Meghmani Organics Ltd revenue growth is 30.1% for FY-2025, which is above its 5-year CAGR of 23.65%, indicating faster growth.

Q: Gross Profit margin of Meghmani Organics Ltd?

Meghmani Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.4% for FY-2025, which is below its 5-year median of 15.3%, indicating decreasing margins.

Q: Operating Profit Margin of Meghmani Organics Ltd?

Meghmani Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.08% for FY-2025, which is below its 5-year median of 14.26% indicating decreasing margins.

Q: Net Profit Margin of Meghmani Organics Ltd?

Meghmani Organics Ltd Net Profit Margin is 3.31% for FY-2025, is below its 5-year median of 9.79%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 8.4, Historic Median: 15.3. Operating Profit Margin (%), Current: 9.08, Historic Median: 14.26. Net Profit Margin (%), Current: 3.31, Historic Median: 9.79

Q: Return on Asset of Meghmani Organics Ltd?

Meghmani Organics Ltd Return on Asset is 2.34%, which is below its 5-year historical median of 8.73%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Meghmani Organics Ltd?

Meghmani Organics Ltd Return on capital employed is 6.34% for FY-2025, which is below its 5-year historical median of 18.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Meghmani Organics Ltd

Snapshot

Q.1 Which industry/sub-sector does Meghmani Organics Ltd belong to?

Meghmani Organics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Pesticides & Agrochemicals segment.

Q.2 Is Meghmani Organics Ltd a good quality company?

Meghmani Organics Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Meghmani Organics Ltd undervalued or overvalued?

Meghmani Organics Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	9.91	9.60
Price to Book	0.71	1.40
Price to Sales	0.59	1.13
EV to EBITDA	5.44	9.63

Q.4 Is Meghmani Organics Ltd a good buy now?

Meghmani Organics Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Meghmani Organics Ltd?

Meghmani Organics Ltd revenue growth is 30.1% for FY-2025, which is above its 5-year CAGR of 23.65%, indicating faster growth.

Q.2 Gross Profit margin of Meghmani Organics Ltd?

Meghmani Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.4% for FY-2025, which is below its 5-year median of 15.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Meghmani Organics Ltd?

Meghmani Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.08% for FY-2025, which is below its 5-year median of 14.26% indicating decreasing margins.

Q.4 Net Profit Margin of Meghmani Organics Ltd?

Meghmani Organics Ltd Net Profit Margin is 3.31% for FY-2025, is below its 5-year median of 9.79%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	8.4	15.3
Operating Profit Margin (%)	9.08	14.26
Net Profit Margin (%)	3.31	9.79

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Meghmani Organics Ltd?

Meghmani Organics Ltd Return on Asset is 2.34%, which is below its 5-year historical median of 8.73%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Meghmani Organics Ltd?

Meghmani Organics Ltd Return on capital employed is 6.34% for FY-2025, which is below its 5-year historical median of 18.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Meghmani Organics Ltd?

Meghmani Organics Ltd Return on equity is 4.16% for FY-2025, which is below its 5-year historical median of 16.17%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Meghmani Organics Ltd?

Meghmani Organics Ltd Cash conversion cycle is 82 days, in line with its 5-year historical median of 82 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.72	0.9
ROE (%)	4.16	16.17
ROCE (%)	6.34	18.3
Cash Conversion Cycle	82 days	82 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Meghmani Organics Ltd?

Meghmani Organics Ltd Debt-to-Equity ratio is 0.35, which is above the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Meghmani Organics Ltd?

Meghmani Organics Ltd Debt to cash flow from operations is 4.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Meghmani Organics Ltd?

Q.1 Promoter shareholding and pledge status of Meghmani Organics Ltd?

Promoters hold 48.95% of the Meghmani Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Meghmani Organics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Meghmani Organics Ltd vs industry peers?

Meghmani Organics Ltd revenue CAGR is 23.65%, compared to the industry median CAGR of 8.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	30.1	8.5
Gross Profit Growth (%)	1,788.9	13.9
Operating Profit Growth (%)	1,900	14
Net Profit Growth (%)	0	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.72	1.19
ROE (%)	4.16	13.63
ROCE (%)	6.34	16.98
Cash Conversion Cycle (days)	81.85	93

Valuation & price assessment

Q.1 Stock return of Meghmani Organics Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -14.57% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-14.6%	-37.2%

Q.2 Valuation ratios of Meghmani Organics Ltd vs historical?

The current P/E ratio of 9.91 is in line with than its historical median of 9.60, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	9.91	9.60	24.78
Price to Book	0.71	1.40	2.67
Price to Sales	0.59	1.13	1.43
EV to EBITDA	5.44	9.63	12.86

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Check Before You Invest : Meghmani Organics Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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