Buy Meghmani Organics; target of Rs 50: Dynamic Levels

Meghmani Organics Limited, a 6000 million Rupees company is one of the largest producers of color pigment in the world. Sound fundamentals, outstanding export performance, strong presence in the domestic market and a focused management team has seen Megmani Organics grow at a compounded annual growth rate of 17% and profits 10% over the past 3 years.  Meghmani is also one of the largest producers of pesticides in India. More than 80% of the company’s pigment products and over 50% of the pesticides products are exported over the world. The Company has 4 multifunctional production facilities in Gujarat (India). The company has an extensive network of 20 overseas distributors worldwide. It has over 1000 stockists, agents, distributors and dealers covering India market for its products.

We initiate coverage on Meghmani Organics Ltd as a BUY @42 with a target of Rs 50 representing a potential upside of 20% from the buy price. Meghmani is trading at a PE of 12.35. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.