Meghmani Organics gains 11.31% in two sessions

Meghmani Organics rose 3.27% to Rs 30 at 15:25 IST on BSE, with the stock extending previous session's surge triggered by the company's subsidiary commencing commercial production of caustic potash-flake at its existing facility in Gujarat.

Meanwhile, the S&P BSE Sensex was down 169.19 points or 0.65% at 25,668.95.

High volumes were witnessed on the counter. On BSE, so far 14.76 lakh shares were traded in the counter as against average daily volume of 3.03 lakh shares in the past one quarter. The stock hit a high of Rs 30.75 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 29.30 so far during the day. The stock had hit a 52-week low of Rs 14.50 on 7 May 2015.

The small-cap company has equity capital of Rs 25.43 crore. Face value per share is Rs 1.

Shares of Meghmani Organics jumped 7.79% to Rs 29.05 on Friday, 22 April 2016 after the company said that Meghmani Organics' subsidiary Meghmani Finechem (MFL) has commenced commercial production of caustic potash-flake (KOH) of 60 metric tonne (Mt) per day on 21 April 2016, at its existing manufacturing facility situated at GIDC Dahej, Bharuch in Gujarat. The announcement was made during market hours on Friday, 22 April 2016. Shares of Meghmani Organics jumped 11.31% in two sessions from its close of Rs 26.95 on 21 April 2016. MFL has successfully commissioned the KOH project within the estimated project cost of Rs 65 crore. The cost of the project has been funded from internal accrual. As a result in full year of operation of year ending 31 March 2017 (FY 2016-17), MFL is expected to earn additional revenue of about Rs 125 crore and profit before tax (PBT) of Rs 20 crore, Meghmani Organics said.

On consolidated basis, Meghmani Organics reported net profit of Rs 23.21 crore in Q3 December 2015 compared with net loss of Rs 4.56 crore in Q3 December 2014. Net sales rose 3.9% to Rs 307.43 crore in Q3 December 2015 over Q3 December 2014.

Meghmani Organics is a manufacturer of pigments and agrochemicals. The company specializes in the manufacture of green and blue pigment products that span multiple applications. The company also produces a broad spectrum of commonly used pesticides for crop and non-crop applications.

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