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41-52 of 52
So I guess we better start to load up more share for this company since there is a possibly for buy back
From https://secure.sgs.gov.sg/apps/msbs/exchangeRatesDisplay.jsp?tableName=exchangeRatesForm.jsp&startYear=2007&startMonth=00&endYear=2007&endMonth=11&frequency=M&displayType=Table&columns=12
100 Rs = Sgd 3.7662 as at May
17 rs = sgd0.64
so can't be wrong.
Bulbea,
is it the right exchange rate???if true..i better load up more..company ever mention to hve share buy back programe...for sure they wil heavy buying if the exchange rate is correct.
From Yahoo Finance, 1 Rs = 0.03794
17 Rs = Sgd0.645
19 Rs = Sgd0.72
Any potential for share to rise after listed at National India Stock.
Pls advice !
Meghmani: Obtains initial go ahead to list on the National Stock
Exchange of India
http://www.listedcompany.com/about/newsletter/20070430/
market correction in china,maybe we can look at tis stock..india stock..2nd lististing in india
how many RS equal 1 sing dollar? going to list in india at RS17_RS19 per share
Meghmani - KELIVE R E S E A R C H - Will this move fast
Pigment expansion
♦ Expanding PG-7 pigment capacity
Yesterday, Meghmani announced a 50% capacity expansion for one of its
key pigment product, PG-7, at its Vatva plant. Strong demand for this
product, both in domestic and export markets, has driven up utilization
rates to 101% as of Sep 06. The expansion will be carried out
progressively over six months, with capacity rising from 100 mt/month, to
150 mt/month by Mar 2007. Notably, the latest capacity expansion was
attained through process improvements and would not entail additional
capex - a testimony to the company?s R&D capabilities.
♦ Pigments continue to grow from strength to strength
Management also provided an update on its pigment business outlook.
This division has continued to exhibit strength, with strong take-up for its
entire product suite comprising PG-7, CPC Blue, Alpha Blue and Beta
Blue. As a result, firm orderbooks have been secured through end FY07.
♦ Industry shakeout leading to better demand-supply balance
We believe the current environment of high input prices has led to the exit
of smaller and less efficient players, speeding up industry consolidation
and removing marginal supply overhang in the market. The resulting price
stability would translate in better returns for industry participants.
Meghmani stands to benefit from improving industry fundamentals, with
its backward integrated business model, sizable scale economies and
cost-efficiency operations.
♦ Reiterate buy on dual-listing catalyst
The company currently trades at 9.3x FY07 P/E and 7.4x FY08 P/E, a
hefty discount to its Indian peers such as Monsanto, Bayer and United
Phosphorous with valuations ranging from 20-38x. With Meghmani?s
impending listing on the Indian SENSEX by 1Q07 and considering the
buoyant sentiment for equities, we believe the stock can attain a better
valuation upon the dual listing. We reiterate buy and $0.44/share target
price.
Pigment expansion
♦ Expanding PG-7 pigment capacity
Yesterday, Meghmani announced a 50% capacity expansion for one of its
key pigment product, PG-7, at its Vatva plant. Strong demand for this
product, both in domestic and export markets, has driven up utilization
rates to 101% as of Sep 06. The expansion will be carried out
progressively over six months, with capacity rising from 100 mt/month, to
150 mt/month by Mar 2007. Notably, the latest capacity expansion was
attained through process improvements and would not entail additional
capex - a testimony to the company?s R&D capabilities.
♦ Pigments continue to grow from strength to strength
Management also provided an update on its pigment business outlook.
This division has continued to exhibit strength, with strong take-up for its
entire product suite comprising PG-7, CPC Blue, Alpha Blue and Beta
Blue. As a result, firm orderbooks have been secured through end FY07.
♦ Industry shakeout leading to better demand-supply balance
We believe the current environment of high input prices has led to the exit
of smaller and less efficient players, speeding up industry consolidation
and removing marginal supply overhang in the market. The resulting price
stability would translate in better returns for industry participants.
Meghmani stands to benefit from improving industry fundamentals, with
its backward integrated business model, sizable scale economies and
cost-efficiency operations.
♦ Reiterate buy on dual-listing catalyst
The company currently trades at 9.3x FY07 P/E and 7.4x FY08 P/E, a
hefty discount to its Indian peers such as Monsanto, Bayer and United
Phosphorous with valuations ranging from 20-38x. With Meghmani?s
impending listing on the Indian SENSEX by 1Q07 and considering the
buoyant sentiment for equities, we believe the stock can attain a better
valuation upon the dual listing. We reiterate buy and $0.44/share target
price.
It said it has applied to list on the National Stock Exchange of India and the Bombay Stock Exchange. The company said it will offer shares worth 1.02 bln rupees or about $35.4 mln.
Proceeds will be used to finance the setting up of new plants, finance working capital requirements, fund inorganic growth opportunities as well as diversification opportunities, and for general corporate purposes.
"We believe that our dual listing will enhance value for shareholders" by providing higher share liquidity and corporate transparency, managing director Ashish Soparakar said in a statement.
1Q07 net profit was in line with expectations, lifted by forex gains and lower tax rates. However, gross margin fell 90 bps to 21.7% on soaring raw material prices - both metal and crude oil derivatives prices have been trending up in the past six months.
The company is progressing on plans to undertake a dual-listing in India to comply with Ministry of Finance (India) regulations; the process is expected to be completed within the next 3 months. New share issue to be capped at 15% of existing share base. The listing proceeds would be deployed in the following areas:
- Expansion of product line to high-performance pigments and pigment additives;
- Adding new capacity for downstream agrochem production; and
- Accelerating product registrations efforts in more countries to grow agrochem exports. With Indian listed peers trading at 16-18x PE, the dual listing may help narrow the 50% valuation discount to its peers.
In the current environment, the key challenge for Meghmani remains on its management of raw material costs and ability to contain further margin erosion. On this front, a silver lining may be in the sky due to:
- double-digit volume growth and higher scale economies;
- the lag impact of cost pass-through to customers taking effect;
- improving market prices.
- the introduction of high performance pigments and pigment additives, should buffer margins in the mid term.
Meghmani is also expanding its overseas warehouse network in China, Russia and UK via rental arrangements (rather than outright investments) to establish closer ties with customers. Such initiatives should yield long term benefits of strengthening the company's supply chain.
At 8x PE, 2-year earnings CAGR of 19% and ROE of 15-16%, the current stock price offers good risk-reward payoffs for those willing to take a long term view. Near-term price catalyst will be the dual listing in India.
KE's price target of 12x FY07 translates to $0.44.
Extracted from my blog http://kelongstocks.blogspot.com
Technical Analysis
Meghmani is currently on a 1 year uptrend. Prices have tested this uptrend line on 4 separate occasions, with 2 of them being 16 May 06 and 18 May 06. On both occasions, prices broke down from this uptrend line on an intraday basis but recovered to close above this uptrend line. Interested investors should look to accumulate near uptrend line.
Resistances: 37.5 cents, 38.5 cents (both intra-day highs achieved in Feb and Mar 06), 41 cents (all time high), beyond this, look to uptrend resistance line (red dotted line and thick red line)
Supports: 34 cents (uptrend support), 32.5/33 cents (recent low and resistance turned support in mid Dec 05), 31 cents (gap support)
Indicators: Neutral (RSI hovering between overbought and oversold region, no distinct trend, MACD negative but reversing upwards, Stochastics heading up towards overbought region, bullish crossover made on 16 May 06 in oversold region). Volumes have been relatively thin during correction from all time high of 41 cents, although an increase was noted during the rebound on 17 May 06 which is a healthy sign.
Extracted from my blog http://kelongstocks.blogspot.com
Meghmani Organics releases its results tomorrow (22 May 06).
Please note that financial ratios above are on a per SDS basis, not per share basis, since each SDS that is traded on SGX is equivalent to 0.5 share. Total shares outstanding is 200.630m and SDS outstanding are 401.260m.
Meghmani is primarily involved in the production and sale of pigments (for printing inks, plastics, rubber, paints, textiles, leather and paper) and agrochemicals (pesticides).
YTD (3Q results) results show a 19.4% increase in revenues (largely to significant increase in sales of agrochemicals to domestic and overseas clients, sales of its pigments were flat compared to last year). Gross margins improved to better selling prices and higher production yield of its agrochemicals. Significantly higher distribution expenses were incurred to support increased export sales while other operating expenses rose due largely to to sharp appreciation of the USD against Indian Rupee from Sep to Dec 2005.
4th quarter other operating expenses should show a decline to a sharp depreciation of the USD against the Indian Rupee. Also 4Q results have historically been stronger than 3Q. However, going forward, the USD has again started to appreciate against the Indian Rupee and this will again lead to higher other operating expenses for FY07. Net profits before tax rose 8.1% on a YTD basis while net profit after tax rose 30% due to increase in exempt profits and decrease in deferred tax expenses.
Meghmani expects to see further growth in FY07 for its Pigments and more so for its Agrochemicals division and has completed expansion of production capacity for the latter in Jan 06. Tax expenses will decrease for Agrochemicals division due to tax benefits. A cautionary note is that the company will continue to be affected by high crude oil prices as well as high copper prices.
............... fair value and conclusion continued at my blog