Shares of this small-cap company surged around 7 percent in Thursday’s trading session after inaugurating Nano Urea Plant at Ahmedabad. The shares have delivered around 22 percent to its shareholders on a YTD basis.
With a market capitalization of Rs. 2,429 crores, the shares of Meghmani Organics Ltd started Thursday’s trading session on a higher note at Rs. 90.85 compared to its previous close of Rs. 89.80. During the trading session, the shares hit a high of Rs. 95.95, gaining around 7 percent and are currently trading at Rs. 94.50 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that Meghmani Crop Nutrition Limited (MCNL), a wholly-owned subsidiary of the company, had inaugurated its Nano Urea Plant today at Sanand, Ahmedabad.
Furthermore, the ceremony was graced in the presence of Mr. Dileep Sanghani, Chairman of Indian Farmers Fertilizer Cooperative Limited (IFFCO). Moreover, the company mentioned that the commencement of commercial production for Nano Urea (Liquid) Fertilizer will be announced separately.
Earlier, in the interim budget of 2024, Finance Minister Nirmala Sitharaman highlighted the promotion of Nano Urea for use on various crops across all agro-climatic zones. Nano Urea, a patented product of IFFCO, has been approved by the Prime Minister and is aimed at reducing India’s import bill and improving crop yield.
In addition, the Nano Urea plant may play an important role for Meghmani Organics because it allows the company to offer innovative, sustainable, and cost-effective agricultural solutions, while also reducing environmental impact and potentially contributing to improved crop yields and reduced import dependence.
Coming onto the company’s financial statement, the revenue decreased by 7 percent from Rs. 379 crores during the September quarter to Rs. 352 crores in the December quarter. On the other hand, the net losses of the company broadened from Rs. 15 crores to Rs. 38 crores during the same period.
The company is planning a substantial CAPEX of Rs. 1,537 crore over the next two years, focusing on expanding its operations in pigments and pesticides.
In the agro division, Meghmani Organics is investing Rs. 350 crore plus to expand its multipurpose plant, with expectations to commission it in early Q3 of the financial year and the company’s subsidiary Meghmani Organics, is undergoing a project with a total CAPEX of Rs. 150 crore for Nano Urea.
Headquartered in Ahmadnagar, Meghmani Organics was incorporated in 2019. The company manufactures green and blue pigment products, which are used to manufacture printing ink, plastic, paints, textiles, leather, and rubber. It also manufactures a wide variety of commonly used pesticides for crop and non-crop applications, this include insect control in wood preservation and food grain storage.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
