Mangalam organics – camphor Growth Story.

MANGALAM ORGANICS

Cmp -354

Market cap – 332 cr.

52 Week H/L – 510/75

Accmulation zone- 300-354.

Stock has already corrected 30% from Recent Highs.

As Currently markets are volatile.It would be good to accmulate stock on DIPS.

MANGALAM ORGANICS Limited Formerly was know as Dujodwala Products Ltd.

Mangalam organics is prime manufacturer of Camphor,sodium Acetate and Resin.

Company has very strong footprints in pine chemical industry.It has customers in Europe,Africa,USA & Middle East.

First Manufacturing plant was Established in year 1996 at kumbhivali near Mumbai pune Express way close to Khalapur Toll. over a period of time company has successfully increased its production and its sales reach and have maintained superior Quality.

Mangalam Organics is an ISO 9001/14001/OHSAS 18001 Certified Company by DNV.

Manufacturing activities are supported by a robust integration of QC, Stores, Packing, Disptach, Maintenance and R&D.

In April 2018 company had Done buyback@230 per share.
Around 75% of the revenue is derived from the sale of camphor. Intially camphor was sold by the company as a commodity but recently company has ventured in to marketing and distribution of camphor as room freshner and Puja-ingredient and many other products.Response to this product is good from the consumers and also available online at Amazon.

Recently At AGM Management commentary was very positive about Growth.

Management never game numbers as they are not allowed.But were told Historically Q2 & Q3 are strong quarters for the company.
Another very good point that chairman made was in india camphor as an industry is at a very early stage of growth one major difference between india and China the two country which major consumption of camphor is that in China 98% of camphor is used for hygiene and medical purpose and in india 98% of camphor is used in Pooja and religious purpose there is a huge Delta and company has rightly ventured into this segment by introducing its two home care and medical care brand that is campure and camplus+ whose products are now available online also on each and every e-comm platform.


In February 2018 French major DRT who employs more then 1200 people across the globe the only global player to deal in all the pine derivatives which supplies to more then 20 industries have tied up Mangalam Organics to supply its products to global markets DRT has a market cap of 2 billion Euro just for information to know the size of the company and has been in the industry since 1932.
DRT supplies to all the major consumers like Michelin,Pirelli and many more.DRT exports to more then 50 countries and more then 20 industries and has big client base across the globe.

For Current financial year company can post an earning of 50-55 & next year we can expect it to report eps of 70-75.

On conservative Basis even If we give P/E of 14.

One can expect following price

55*14 =770 ( 12 To 18 Months)

75*14 =1050 (24 To 36 Months)

Disc – All views expressed are for educational and study purpose only.Consult your financial advisor before taking any position.

2 thoughts on “Mangalam organics – camphor Growth Story.

  1. Sir. I have a serious doubt? Is mangalam organic s expanding its capacity x 2. We already know that Kanchi KARPOORAM is expanding its capacity x3 . Will we see a demand supply mismatch that’s present now going against the companies after expansion.?

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s