Meghmani Finechem Limited
Meghmani Finechem Limited Fundamental Analysis
Meghmani Finechem Limited (MFL.NS) shows moderate financial fundamentals with a PE ratio of 12.49, profit margin of 16.14%, and ROE of 39.36%. The company generates $21.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MFL.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMFL.NS demonstrates superior asset utilization.
Valuation Score
ExcellentMFL.NS trades at attractive valuation levels.
Growth Score
ModerateMFL.NS shows steady but slowing expansion.
Financial Health Score
ModerateMFL.NS shows balanced financial health with some risks.
Profitability Score
ExcellentMFL.NS achieves industry-leading margins.
Key Financial Metrics
Is MFL.NS Expensive or Cheap?
P/E Ratio
MFL.NS trades at 12.49 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFL.NS's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Meghmani Finechem Limited at 4.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.09 times EBITDA. This is generally considered low.
How Well Does MFL.NS Make Money?
Net Profit Margin
For every $100 in sales, Meghmani Finechem Limited keeps $16.14 as profit after all expenses.
Operating Margin
Core operations generate 26.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.36 in profit for every $100 of shareholder equity.
ROA
Meghmani Finechem Limited generates $14.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Meghmani Finechem Limited generates strong operating cash flow of $6.26B, reflecting robust business health.
Free Cash Flow
Meghmani Finechem Limited produces free cash flow of $2.10B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $50.47 in free cash annually.
FCF Yield
MFL.NS converts 4.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How MFL.NS Stacks Against Its Sector Peers
| Metric | MFL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.49 | 27.18 | Better (Cheaper) |
| ROE | 39.36% | 860.00% | Weak |
| Net Margin | 16.14% | -121084.00% (disorted) | Strong |
| Debt/Equity | 0.82 | 0.41 | Weak (High Leverage) |
| Current Ratio | 0.65 | 4.81 | Weak Liquidity |
| ROA | 14.53% | -7173.00% (disorted) | Strong |
MFL.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Meghmani Finechem Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value