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Mangalore Chemicals & Fertilizers Ltd. Stock Analysis

Small Cap
Evaluated by 464 users | BSE: 530011 | NSE: MANGCHEFER |
Fertilizers
Mangalore Chemicals & Fertilizers (MCF) incorporated in 1966; is the only manufacturer of chemical fertiliser in state of Karnataka. This Karnataka based company is Rs 1625 crore enterprise that manufactures products such as urea, di-ammonium phosphate, muriate of potash, granulated...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.97%15.12%8.41%9.05%7.15%1.91%5%7.81%6.27%7.91%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,5203,7072,7803,3102,5772,9692,4792,6893,0742,711
Y-o-Y Gr. Rt.-47.1%-25%19.1%-22.2%15.2%-16.5%8.5%14.3%-11.8%
Adjusted EPS (Rs.) 5.9811.67.899.114.38-3.910.356.464.177.63
Y-o-Y Gr. Rt.-94%-32%15.5%-51.9%-189.3%NA1745.7%-35.5%83%
Book Value per Share (Rs.) 33.6638.142.3145.1647.7728.9830.6540.2741.7846.03
Adjusted Net Profit 70.913793.510852-46.34.176.649.490.4
Net Op. Cash Flow (Rs. Cr.) -9.8-816324-22.3613-13633732.9-262629
Debt to Cash Flow from Ops -19.25-1.623.8-68.331.81-10.173.5641.54-6.542.4
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Mangalore Chemicals & Fertilizers Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 0.8%1%3%-11.8%
Adjusted EPS 2.7%11.7%179.4%83%
Book Value per Share 3.5-0.714.510.2
Share Price -1.2% -8.3% -25.3% -4.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.526.9416.7217.728.02-8.70.991710.1617.37
Operating Profit Margin (%) 5.87.927.678.257.085.716.117.856.898.92
Net Profit Margin (%) 2.813.713.363.262.02-1.560.172.851.613.33
Debt to Equity 0.472.932.452.841.964.033.312.863.462.76
Working Capital Days 72108214185235205243222235279
Cash Conversion Cycle 3151847987142155167
Entity Percentage Holding
Promoters 59.67%
Institutions 8.74%
Non-Institutions 31.59%
Pledged *34.6990.6574.7876.4376.0673.6389.4494.9992.6390.54
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Mangalore Chemicals & Fertilizers Ltd.'s performance infers:

Mangalore Chemicals & Fertilizers Ltd. earnings have grown by 11.7%, whereas share price has depreciated -8.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Mangalore Chemicals & Fertilizers Ltd. share prices over the last 10 years. Here is what we found out:

Mangalore Chemicals & Fertilizers Ltd. share price has depreciated -3.7% annually over the past ten years.

Mangalore Chemicals & Fertilizers (MCF) incorporated in 1966; is the only manufacturer of chemical fertiliser in state of Karnataka. This Karnataka based company is Rs 1625 crore enterprise that manufactures products such as urea, di-ammonium phosphate, muriate of potash, granulated fertilizers, micronutrients, soil conditioners and specialty fertilizers.

The company’s factory is strategically located at Panambur, 9 km north of Mangalore City, on the

Mangalore Chemicals & Fertilizers (MCF) incorporated in 1966; is the only manufacturer of chemical fertiliser in state of Karnataka. This Karnataka based company is Rs 1625 crore enterprise that manufactures products such as urea, di-ammonium phosphate, muriate of potash, granulated fertilizers, micronutrients, soil conditioners and specialty fertilizers.

The company’s factory is strategically located at Panambur, 9 km north of Mangalore City, on the banks of the Gurpur River, in front of the New Mangalore Port. The plant is well connected, both by rail and road. The West Coast National Highway (NH-l7) from Kochi to Mumbai separates MCF from the New Mangalore Port.

Company’s wholly owned subsidiary MCF International (MCFIL) is engaged in consultancy and plant management services.

UB Group (Parent Company)

MCFL is part of the UB Group with Group shareholding of 30%. Dr. Vijay Mallya is Chairman of the Board of Directors.

UB Group business interests are in area of brewing, distilling, aviation, fertilizers, life sciences, engineering, research and development and information technology.

Manufacturing Facilities

MCFL’s ammonia/Urea plants was designed and developed by Humphreys & Glasgow Limited of London. Its phosphatic plant is designed and engineered by Toyo Engineering Corporation of Japan. PDIL constructed Ammonium Bi-Carbonate plant whereas Furnace Fabrica constructed Sulphuric Acid SAP.

MCFL’s manufacturing facilities  has received ISO 14001:2000, ISO 14001:2004, OHSAS 18001:1999 and OHSAS 18001:2007 certification for its quality management

The Company has capacity to manufacture 2,17,800 MT Ammonia (intermediate product), 3,80,000 MT Urea, 2,60,000 MT Phosphatic Fertilizers (DAP & NP 20:20:00:13), 13,860 MT Ammonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric Acid (SAP) annually.

Awards

  • FAI Award for 'Improvement in overall performance of a Company’ for three consecutive years 1996-97, 1997-98 and 1998-99
  • Letter of recognition in 1997 from Directorate General of Factory advisory Services and Labour Institutes (DGFASLI) for maintaining good safety and occupational health standards
  • The company received the ‘Honest Tax paying businessmen’ award from Commercial Taxes Department, Mangalore Division, a unique initiative taken by Government of Karnataka to honour the prompt Tax payers. Mr. P. C. Jain, Senior Vice President (Works), MCF, Mangalore, received the award in a felicitation function held at Mangalore on March 18, 2005
  • The company has been awarded the prestigious certificates on 1. Environment Management System conforming to ISO 14001:2000 in 2003 which was updated to latest version ISO 14001:2004 in 2005 and 2. Occupational Health & Safety Management System conforming to OHSAS 18001:1999 standard in 2005 which was updated to latest version OHSAS 18001:2007 in 2008.
  • The certificates were awarded by DET NORSKE VERITAS (DNV), the Netherlands, a global certifying agency
  • FAI Environmental Protection Award in NP/NPK Fertilizer Plants for the year 2009-2010.
  • 2010 - SECOND BEST SAFE INDUSTRY IN LARGE SECTOR FOR THE YEAR 2010 award conferred by the Karnataka State Safety Institute (R) (Department of Factories & Boilers) and the National Safety Council, Karnataka Chapter, Bangalore.
    FAI Environmental Protection Award in NP/NPK Fertilizer Plants for the year and 2010-2011.
    FAI runner up award for best technical innovation in Fertilizer Industry for the year 2010-11.
    FAI joint runner up award for Production Performance in Nitrogenous Fertilizer Plant for the year 2010-11.

Milestones

  • 1976- The company started its ammonia and urea production.
  • 1982- Company installed 60 tons per hour auxiliary boiler. In the same year it also set up Ammonium Bi-carbonate plant.
  • 1984- MCFL set up a purge gas recovery unit.
  • 1985- Company set up a captive power plant.
  • 1986- MCFL established di-ammonium phosphate plant.
  • 1993- Company developed a 2.5 Million Gallons reservoir.
  • 1999- Company started selling granulated fertilizers.
  • 2002- Company installed Pipe Reactor. In the same year, MCFL started marketing of micro nutrient - Zinc Sulphate
  • 2003- Company implemented SAP R/3, integrated software system and OPERATION MITE. Company received ISO 14001 Certification.
  • 2005- Company received OHSAS certification.
  • 2006- MCFL has installed a 100 TPD Sulphuric Acid plant.
  • 2008- MCFL has installed an imported fertilizers handling unit.
  • 2011- The company received an approval from High Court of Karnataka, Bangalore to merge MCF International, the wholly-owned subsidiary of the company with the company.

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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