Meghmani Finechem shares snap 2-day fall, surge 15% today amid heavy volumes

Shares of Meghmani Finechem Ltd rose sharply in Friday's trade, snapping their two-day fall. The stock jumped 14.95 per cent to hit a day high of Rs 1,168.30 over its previous close of Rs 1,016.40. At today's high price, the stock has slipped 32.73 per cent from its 52-week high of Rs 1,736.60, hit on September 20 last year. That said, it has gained 44.13 per cent from its one-year low of Rs 810.60, a level seen on March 29, 2023.

Around 65,000 shares changed hands today on BSE, which was more than four times higher compared to the two-week average volume of 14,000 shares. Turnover on the counter stood at Rs 7.33 crore, commanding a market capitalisation (m-cap) of Rs 4,745.44 crore.

The chemical manufacturer has fixed June 20, 2023, as the record date for the final dividend payment. The company declared a final dividend of Rs 2.50 per share for the last fiscal.

On technical setup, the stock was last seen trading higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 72.45. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 11.95. It has a price-to-book (P/B) value of 3.95.

The scrip has a one-year beta of 0.76, indicating low volatility.

In the March 2023 (Q4 FY23) quarter, the firm reported a 22.57 per cent fall in its net profit, at Rs 76.73 crore, against Rs 99.09 crore profit in the corresponding quarter of the previous fiscal. Revenue climbed 12.73 per cent to Rs 562.18 crore in Q4 FY23 against Rs 498.80 crore in the March 2022 quarter. Operating profit declined 11.67 per cent to Rs 154.67 crore for the quarter that ended March 2023 against Rs 175.11 crore in the same period last year.

On an annual basis, net profit zoomed 39.76 per cent to Rs 353.29 crore for the fiscal ended March 2023 against Rs 252.79 crore in FY22. Revenue climbed 41.10 per cent to Rs 2,188.40 crore in March 2023 fiscal against Rs 1,550.94 crore in FY22. Operating profit rose 35.22 per cent to Rs 688.94 crore for the fiscal ended March 2023 against Rs 509.49 crore in the previous fiscal.

Meghmani Finechem is a manufacturer of essential chemicals. The company is engaged in manufacturing and selling Chlor-Alkali & its derivatives. It is also engaged in the trading of agrochemical products. The company manufactures a range of products: caustic soda, caustic potash, chlorine, hydrogen, chloromethanes, and hydrogen peroxide.

Meanwhile, Indian equity benchmarks traded higher in afternoon deals today, taking cues from the global markets. The domestic indices rose today led by gains in banks, financials, metals, pharma and consumer stocks.