At a Glance
Over the last 5 years, Epigral (formerly Meghmani Finechem) has transformed from a humble caustic soda maker into a serious player in India’s specialty chemicals space. With ₹2,550 Cr in FY25 revenue, 28% EBITDA margins, and ₹357 Cr in profits, it’s no longer content being a midcap sidekick. But is the stock, now trading at ~22x earnings, still a buy?
1. A Tale of Two Businesses: From Chlorine to CPVC
When your old name has “finechem” and your new one sounds like a Marvel villain, you better live up to the hype. Thankfully, Epigral does — it’s moved beyond bulk chlor-alkali to high-margin, backward-integrated specialty chemicals.
Revenue
Mix Evolution:
| Year | Caustic + Basic Chemicals | Derivatives + Specialty | % Specialty |
|---|---|---|---|
| FY22 | 75% | 25% | 25% |
| FY25 | 44% | 56% | 56% |
That’s not pivoting — that’s full-on business reincarnation.
🧪Key Specialty Products:
- CPVC Resin & Compounds
- Epichlorohydrin (EPI)
- Chloromethanes (MDC, Chloroform, CTC)
- Hydrogen Peroxide
2. Financial Glow-Up: From Ugly Duckling to Dividend-Spraying Swan
P&L Snapshot (₹ Cr):
| Year | Revenue | EBITDA | PAT | OPM | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | 829 | 261 | 101 | 32% | 24.5 |
| FY22 | 1,551 | 510 | 253 | 33% | 60.8 |
| FY23 | 2,188 | 689 | 353 | 31% | 85.0 |
| FY24 | 1,929 | 481 | 196 | 25% | 47.1 |
| FY25 | 2,550 | 711 | 357 | 28% | 82.7 |
📉 FY24 dip was a speedbump (raw material inflation + demand headwinds), but FY25 came roaring back.
📈 5-Year Sales CAGR: 33%💰 5-Year PAT CAGR: 26%
3. Capex or Chaos? The Infra Overload
Epigral has thrown cash
