MANGCHEFERMangalore Chemicals and Fertilizers Ltd
#MANGCHEFER
A fertilizer manufacturing company engaged in manufacturing, purchase and sales of fertilizers.
Key Highlights:
- CMP: ₹166.1
- Consistent high return for last 5 years among Nifty500
- Annual net profit increasing for last 2 years
- Mutual funds increased their stake in last quarter
- Debt is reducing
- Management is confident to increase production of ammonium and urea plant
Merits:
1. Consistent Profitability: Annual net profit has been increasing for the last 2 years, with a consistent high return for the last 5 years among Nifty500.
2. Reducing Debt: The company's debt has been decreasing, indicating a healthy financial position.
3. Increased Mutual Fund Stake: Mutual funds have increased their stake in the company in the last quarter, indicating investor confidence.
4. Improving Operational Efficiency: Debtor days, cash conversion cycle period, and working capital days are decreasing QoQ, indicating improving operational efficiency.
5. Positive Management Outlook:The management is confident to increase production of ammonium and urea plant, which was in shutdown stage during the last quarter.
6. Near 52-Week High: The stock is near its 52-week high, indicating strong investor sentiment and potential for further upside.
Demerits:
1. High Promoter Pledge: The promoter pledge is very high, which could be a concern.
2. Merging with Paradeep Phosphate: The proposed merger with Paradeep Phosphate is still in the air, and the outcome is uncertain.
Conclusion:
Mangalore Chemicals and Fertilizers Ltd has shown consistent profitability, reducing debt, and increasing mutual fund stake. With the stock near its 52-week high, strong investor sentiment, and potential for further upside, it's definitely a stock to watch. If the company can successfully merge with Paradeep Phosphate and increase production, it could lead to a big move in the stock price, provided volume supports it.However, the high promoter pledge and uncertainty around the proposed merger with Paradeep Phosphate are concerns that need to be monitored.
Disclaimer : Post only for educational purpose. This is not a buying/ selling recommendation. Iam not a SEBI registered analyst .Do your own analysis and act accordingly.
