Q4 Results Impact: This specialty chemical stock jumps over 28% in 2 trading sessions – What should investors know?

Speciality chemical company Meghmani Finechem shares touched a new record high of Rs 1,469.55 per share after surging almost 14 per cent on the BSE intraday during Tuesday’s trading session. The stock in the last two days has spurted over 28 per cent on the BSE post robust March quarter results. 

The small-cap company on Monday reported a robust operating and financial performance for the March-end quarter for fiscal 2021-22 (Q4FY22). Its profit after tax (PAT) jumped around three times to Rs 99 crore in Q4FY22 as compared to Rs 33 crore in a year-ago quarter amid strong sales.  

Similarly, the company’s revenue from operations surged 93 per cent to Rs 499 crore in the March-end quarter of FY22 as against Rs 259 crore in the same quarter a year ago. 

The counter has gained around 91 per cent in the last two months from a level of Rs 771 on March 7, 2022, mostly on the expectations of strong Q4 results. At around 12 PM, the stock is up over 9 per cent to Rs 1414 per share on the BSE as against a 1.23 per cent gain in the S&P BSE Sensex. 

Meanwhile, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization jumped by 118 per cent to Rs 175 crore versus Rs 80 crore in a year-ago quarter and the margin was up by 405 bps to 35 per cent year-on-year, despite high inflationary pressure on raw materials. 

The management in its commentary as per exchange filing said, “Strong operational efficiency and internal cost control measures allowed the company to maintain margins even with the inflationary pressure.” 

A leading manufacturer of chlor-alkali products and value-added derivatives – Meghmani Finechem is India’s 4th largest manufacturer of caustic soda, chlorine and hydrogen and a manufacturer of caustic potash, chloromethanes and hydrogen peroxide.