How Meghmani Made Money: 286% Returns In Just 1 Year

Your ₹1 lakh would have become ₹2 lakhs in just 6 months and ₹3.86 lakhs in just 1 year if you had invested in Meghmani Finechem. This chemical multibagger grew by 286% in just 1 year. Here’s a closer look at the company.

🧪 Stock Name: Meghmani Finechem Limited.
🧪 NSE: $MFL

🥼 About The Company
Meghmani Finechem Limited (MFL) is one of the leading and largest essential chemical manufacturing companies in India. It was incorporated in 2007 as a subsidiary of Meghmani Organics Limited under the provisions of the Companies Act 1956. The company provides caustic soda, caustic potash, chlorine, hydrogen, chloromethanes, and hydrogen peroxide and caters to customers worldwide.

🧑🏽‍🔬 The Journey So Far
▪️ In 2021, MFL demerged from its twin, Meghmani Organics. The company has been showing steady growth since then, giving an average return of 268.56% from August 2021.

▪️ The price of each share of the company was trading at ₹426.75 on August 20th, 2021 as compared to the current market price of ₹1557.40 as of July 21st, July 2022.

▪️ The company’s manufacturing complex is located in a 60-hectare facility in Dahej (Gujarat). It is highly dependent on Chloro-Alkali products for revenue generation, which contributed 70% of the revenue of the company as of FY21, and the company is keen to increase its exports, which are negligible presently.

⚗️ Growth Potential
▪️ Virtually debt-free
▪️ High promoter holding of 71.18%
▪️ Market cap has surged by ₹7.8 billion
▪️ Reported a nearly 3-fold jump in their net profits, taking the amount to ₹108 crores in Q1 of FY23. This is a huge jump compared to Q1, FY22 when the net profits stood at ₹37 crores.