InCred Equities - Meghmani Finechem Ltd

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue (Rsm)	21,884	19,990	21,590	23,190
Operating EBITDA (Rsm)	6,889	4,506	5,164	5,620
Net Profit (Rsm)	3,533	1,835	2,312	2,630
Core EPS (Rs)	85.0	44.2	55.7	63.3
Core EPS Growth	39.8%	(48.1%)	26.0%	13.7%
FD Core P/E (x)	22.67	43.66	34.64	30.46
DPS (Rs)
Dividend Yield
EV/EBITDA (x)	12.88	19.85	16.89	15.05
P/FCFE (x)	58.83	57.92	80.64	23.96
Net Gearing	80.5%	49.4%	29.6%	12.0%
P/BV (x)	7.49	5.47	4.73	4.09
ROE	39.4%	15.8%	16.9%	16.3%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Net Revenues	21,884	19,990	21,590	23,190
Gross Profit	10,736	8,596	9,500	10,204
Operating EBITDA	6,889	4,506	5,164	5,620
Depreciation And Amortisation	(1,090)	(1,198)	(1,318)	(1,450)
Operating EBIT	5,800	3,307	3,846	4,170
Financial Income/(Expense)	(655)	(876)	(776)	(676)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	80	22	22	22
Profit Before Tax (pre-EI)	5,225	2,453	3,092	3,516
Exceptional Items
Pre-tax Profit	5,225	2,453	3,092	3,516
Taxation	(1,692)	(618)	(779)	(886)
Exceptional Income - post-tax
Profit After Tax	3,533	1,835	2,312	2,630
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	3,533	1,835	2,312	2,630
Recurring Net Profit	3,533	1,835	2,312	2,630
Fully Diluted Recurring Net Profit	3,533	1,835	2,312	2,630

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
EBITDA	6,889	4,506	5,164	5,620
Cash Flow from Invt. & Assoc.
Change In Working Capital	408	(945)	(333)	(333)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(41)
Other Operating Cashflow	735	898	798	698
Net Interest (Paid)/Received	(655)	(876)	(776)	(676)
Tax Paid	(1,075)	(618)	(779)	(886)
Cashflow From Operations	6,262	2,964	4,074	4,424
Capex	(4,165)	(1,581)	(1,081)	(1,081)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(208)
Cash Flow From Investing	(4,372)	(1,581)	(1,081)	(1,081)
Debt Raised/(repaid)	(528)		(2,000)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(242)
Preferred Dividends
Other Financing Cashflow	(1,228)
Cash Flow From Financing	(1,998)		(2,000)
Total Cash Generated	(108)	1,383	993	3,343
Free Cashflow To Equity	1,362	1,383	993	3,343
Free Cashflow To Firm	2,544	2,259	3,770	4,019

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Cash And Equivalents	151	1,525	1,742	4,409
Total Debtors	1,663	3,304	3,568	3,833
Inventories	2,118	1,987	2,146	2,305
Total Other Current Assets	262	79	79	79
Total Current Assets	4,194	6,894	7,535	10,625
Fixed Assets	19,622	20,004	19,767	19,398
Total Investments	206	0	0	0
Intangible Assets
Total Other Non-Current Assets	300	396	396	396
Total Non-current Assets	20,128	20,400	20,162	19,793
Short-term Debt	3,315	3,315	3,315	3,315
Current Portion of Long-Term Debt
Total Creditors	1,102	1,136	1,226	1,317
Other Current Liabilities	2,060	2,406	2,406	2,406
Total Current Liabilities	6,476	6,856	6,947	7,038
Total Long-term Debt	5,446	5,446	3,446	3,446
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	13	31	31	31
Total Non-current Liabilities	5,460	5,477	3,477	3,477
Total Provisions	1,695	324	324	324
Total Liabilities	13,631	12,658	10,749	10,839
Shareholders Equity	10,692	14,636	16,948	19,578
Minority Interests
Total Equity	10,692	14,636	16,948	19,578

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue Growth	41.1%	(8.7%)	8.0%	7.4%
Operating EBITDA Growth	35.2%	(34.6%)	14.6%	8.8%
Operating EBITDA Margin	31.5%	22.5%	23.9%	24.2%
Net Cash Per Share (Rs)	(207.23)	(174.16)	(120.80)	(56.62)
BVPS (Rs)	257.30	352.22	407.87	471.16
Gross Interest Cover	8.85	3.77	4.96	6.17
Effective Tax Rate	32.4%	25.2%	25.2%	25.2%
Net Dividend Payout Ratio
Accounts Receivables Days	35.25	45.35	58.09	58.24
Inventory Days	59.91	65.75	62.38	62.55
Accounts Payables Days	32.46	35.83	35.65	35.75
ROIC (%)	21.9%	11.9%	12.9%	14.0%
ROCE (%)	29.6%	14.8%	16.1%	16.5%
Return On Average Assets	17.5%	9.6%	10.5%	10.8%

(91) 22 4161 1562 satish.kumar@incredresearch.com

(91) 22 4161 1598 abbas.punjani@incredresearch.com

Market Data

Source: Bloomberg