1. At a Glance
If you ever wanted to see what “chemical romance with volatility” looks like — meetMeghmani Organics Ltd (MOL). The ₹1,896 crore market-cap Gujarat-based pigment and agrochemical manufacturer is back in the green, literally and figuratively. After flirting with losses in FY24, the company delivered a225% jump in quarterly profitsin Q2 FY26, proving that the “organic” in its name doesn’t mean “stable”.
At ₹74.6 per share, Meghmani looks like that ex who’s trying hard to make a comeback — 13% down in 3 months, 27% down over a year, but flashing a 148% YoY profit growth to remind everyone it’s still alive. Withsales of ₹577 crore,PAT of ₹11.6 crore, and anoperating margin near 10%, this chemical veteran is fighting its way back into investor relevance.
Thestock trades at 47.8x P/E, which, given aROE of -0.8%, looks more like a dare than a valuation. But hey — in a market where people pay for vibes, not profits, Meghmani might just pigment your portfolio in surprising shades.
2. Introduction – “From Fire Drills to Fertilizers”
Ah, Meghmani Organics — the Gujarati chemical manufacturer that’s seen more fire incidents than most Bollywood studios. Founded in 1986, the company began with blue and green pigments, which ironically are now the colours of both its products and its investors’ moods.
Over the years, Meghmani evolved into a full-blownchemical conglomerate, with operations spanningAgrochemicals (70%),Pigments (26%), and the newly addedCrop Nutrition (4%)segment. Its exports make up 83% of revenues — a clear sign that while the world wants Meghmani’s pigments, Indian investors still aren’t sure if they want its stock.
FY25 was a rollercoaster: a34% YoY revenue surge, a301% EBITDA growth, and some much-needed healing after FY24’s chaos. Fire accidents? Handled. CRISIL downgrade? Survived. Insurance settlements? Collected. Nano Urea plant? Launched. Basically, Meghmani has been through the corporate equivalent of a detox camp.
Now, as FY26 unfolds, Meghmani is focusing on cleaner energy, cleaner balance sheets, and hopefully, cleaner fire safety drills.
3. Business Model – WTF Do They Even Do?
Let’s decode this chemistry circus. Meghmani Organics isn’t your average soap-and-sanitizer chemicals company. It plays in two volatile but high-margin spaces:Agrochemicals and Pigments.
A) Agrochemicals (70% of FY25 revenue)Think of it as Meghmani’s money-spinner — the pesticide factory that keeps the cash flowing. They make everything fromtechnical-grade insecticidestointermediateslike Cypermethrin Acid Chloride (because even mosquitoes deserve chemical sophistication). 80% of this is exported to regions like the US, Brazil, and Africa.
They’ve registered788 productsworldwide — up from693 in FY23, meaning Meghmani now has more licenses than your friendly neighborhood chemist.
B) Pigments (26%)If colours could talk, Meghmani’s pigments would brag the loudest. The company isamong the top 3 global playersinPhthalocyanine-based blue and green pigments. Its clientele includes paint, plastic, ink, textile, and even cosmetic manufacturers. Oh, and they recently jumped intoTitanium Dioxide (TiO₂)— because white is the new blue.
C) Crop Nutrition (4%)Their newest baby — theNano Urea segment— launched in partnership with IFFCO. It’s small now but growing like a weed (pun intended). They’re running field trials in 35–40 countries, so soon Meghmani might be fertilizing crops globally and investors domestically.
4. Financials Overview
| Metric | Latest Qtr (Sep FY26) | YoY Qtr (Sep FY25) | Prev Qtr (Jun FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 577 | 446 | 614 | 29.4% | -6.0% |
| EBITDA (₹ Cr) | 52 | 13 | 67 | 300%+ | -22.3% |
| PAT (₹ Cr) | 11.6 | 3.6 | 13 | 225% | -10.8% |
| EPS (₹) | 0.45 | 0.14 | 0.50 | 221% | -10% |
Annualized EPS = ₹1.8 → P/E = 74.6 / 1.8 = ~41.4x (rounded; screener shows 47.8x due to TTM adjustment).
Commentary:
- Meghmani’s profit chart looks like an ECG — but at least it’s alive now.
- Margins improved thanks to anti-dumping duties and TiO₂ ramp-up.
- QoQ decline? Classic chemical cycle hangover — but the YoY comeback steals the show.
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E MethodIndustry P/E = 28.4Company EPS (TTM) = ₹1.56Fair Value Range = ₹1.56 × (25–35) = ₹39 – ₹55
Method 2: EV/EBITDAEV = ₹2,696 Cr | EBITDA (TTM) = ₹225 CrEV/EBITDA = 12.0xPeer range = 8x–15xFair Value EV range = ₹1,800 – ₹3,400 Cr → Implied Price Range = ₹50 – ₹90
Method 3: DCF (Simplified)Assuming FCF margin = 5%, growth = 10%, WACC = 12% → Intrinsic range ₹60–₹85
👉Educational Fair Value Range: ₹50 – ₹85 per share(Disclaimer: This fair value range is for educational purposes only and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
2024–25 was full-on Bollywood:
- 🔥Fire at Dahej SEZ & Panoli Plants– luckily, no injuries, but plenty of insurance paperwork.
- 💸Full insurance settlement received– fire turned into free cash flow.
- 🌾Nano Urea Plant launchedin Ahmedabad with IFFCO partnership – first of its kind in private sector.
- ⚡4.5 MW Wind-Solar Hybrid Projectcommissioned – Meghmani’s going green while selling chemicals.
- 🧾Anti-Dumping Duty on Chinese TiO₂ imports– big win for Indian pigment players.
- 📉CRISIL downgrade (Feb 2024)– after too many fires, CRISIL had trust issues.
- 🪶Debt reduction target:₹160 Cr by FY26; debt-free by FY27.
Moral of the story: Meghmani’s management has
