Meghmani Organics surges 47% in two weeks on strong Q1 results

The stock hit a record high of Rs 74.70, surged 14% on the NSE in intra-day trade

Meghmani Organics hit a record high of Rs 74.70, surged 14% on the National Stock Exchange (NSE) in intra-day trade on Friday, in otherwise weak market.

In past two weeks, the stock of specialty chemicals has rallied 47% from Rs 50.85 on August 4, after the company reported a healthy 74% year-on-year (YoY) growth in net profit at Rs 32.9 crore in June quarter (Q1FY18). It had profit of Rs 18.8 crore in the same quarter year ago.

Operational revenues grew 17% YoY to Rs 415 crore, driven by strong exports growth of 26% and domestic revenue growth of 8%; exports contributing 54% to revenue. Earnings before interest, taxation, depreciation and amortisation (EBITDA) margin expanded 87 bps to 22%.

At 12:06 pm; the stock was up 9% to Rs 71.55, as compared to 0.86% fall in the S&P BSE Sensex. The trading volumes on the counter more than doubled. A combined 17.14 million equity shares representing 6.7% of total equity changed hands on NSE and BSE so far.