MANGALAM ORGANIC- TIME TO SLOWLY ACCMULTE TO RIP BENEFITS IN LONG TERM

MANGALAM ORGANICS

Cmp -271.55

Market cap – 244 cr.

52 Week H/L – 614/204

Accmulation zone – 230 – 271

Stock has ability to see new highs in next 18 to 36 months.

Stock has already corrected 56% from it’s high of 614.Risk Reward Ratio seems favourable to start Accmulating.

As Currently market sentiments are not FAVOURING Midcaps.It would be good to accmulate stock on DIPS in SIP only

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

In all AGM last year Management commentary was very positive about Growth for next 12 to 18 months

Historically Q2 & Q3 are strong quarters for the company as festive season starts and CAMPHOR prices are remains strong & Stable.

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.

In FY19 COMPANY HAD REPORTED SALES OF 400CR & NET PROFITS WERE 72.66cr Approx & FOR FY20 COMPANY CAN REPORT SALES OF 450-500cr & NP CAN BE AROUND 90CR.

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

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