Mangalore Chemicals & Fertilizers (NSEI:MANGCHEFER) - Share price, News & Analysis

Q: What is the Fair Price of MANGCHEFER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MANGCHEFER (₹106.4) is trading above our estimate of [[fair value]] (₹17.84)

MANGCHEFER fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	2/6

MANGCHEFER Stock Overview

Mangalore Chemicals & Fertilizers Limited manufactures, purchases, and sells nitrogenous and phosphatic fertilizers in India and internationally.

Rewards

Price-To-Earnings ratio (14.3x) is below the Indian market (19.9x)

Earnings grew by 30.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

High level of non-cash earnings

Dividend of 1.13% is not well covered by earnings

Mangalore Chemicals & Fertilizers Competitors

Southern Petrochemical Industries

BSE:590030

₹10.0b

Bhagiradha Chemicals & Industries

BSE:531719

₹9.8b

Insecticides (India)

BSE:532851

₹16.9b

Excel Industries

BSE:500650

₹15.1b

Price History & Performance

Summary of all time highs, changes and price drops for Mangalore Chemicals & Fertilizers
Historical stock prices
Current Share Price	₹106.40
52 Week High	₹125.75
52 Week Low	₹61.50
Beta	0.77
1 Month Change	28.58%
3 Month Change	19.96%
1 Year Change	26.37%
3 Year Change	172.47%
5 Year Change	49.02%
Change since IPO	242.67%

Recent News & Updates

May 29

Mangalore Chemicals & Fertilizers (NSE:MANGCHEFER) Takes On Some Risk With Its Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	MANGCHEFER	IN Chemicals	IN Market
7D	5.2%	5.2%	4.1%
1Y	26.4%	-0.3%	-0.02%

Return vs Industry: MANGCHEFER exceeded the Indian Chemicals industry which returned -1.5% over the past year.

Return vs Market: MANGCHEFER exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is MANGCHEFER's price volatile compared to industry and market?
MANGCHEFER volatility
MANGCHEFER Average Weekly Movement	11.1%
Chemicals Industry Average Movement	6.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: MANGCHEFER is more volatile than 90% of Indian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: MANGCHEFER's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
1966	680	Shubhabrata Saha	https://www.mangalorechemicals.com

Mangalore Chemicals & Fertilizers Limited manufactures, purchases, and sells nitrogenous and phosphatic fertilizers in India and internationally. The company offers urea, di-ammonium phosphate, ammonium bi-carbonate, single superphosphate, and muriate of potash; and plant nutrition products, such as soil conditioners, organic products, micronutrients, specialty agri products, water soluble fertilizers, crop specific soil products, and wetting and spreading agents. It also provides plant protection chemicals comprising insecticides, fungicides, herbicides, and PP chemicals; and other products, such as ammonium bi carbonate, sulphonated naphthalene formaldehyde, and sulphuric acid products.

Mangalore Chemicals & Fertilizers Fundamentals Summary

How do Mangalore Chemicals & Fertilizers's earnings and revenue compare to its market cap?
MANGCHEFER fundamental statistics
Market Cap	₹12.60b
Earnings (TTM)	₹878.61m
Revenue (TTM)	₹28.96b

14.3x

P/E Ratio

0.4x

P/S Ratio

Is MANGCHEFER overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MANGCHEFER income statement (TTM)
Revenue	₹28.96b
Cost of Revenue	₹18.02b
Gross Profit	₹10.93b
Other Expenses	₹10.05b
Earnings	₹878.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.41
Gross Margin	37.76%
Net Profit Margin	3.03%
Debt/Equity Ratio	196.4%

How did MANGCHEFER perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

16%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MANGCHEFER undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MANGCHEFER?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MANGCHEFER. This is calculated by dividing MANGCHEFER's market cap by their current preferred multiple.
What is MANGCHEFER's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹12.60b

MANGCHEFER key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	9.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does MANGCHEFER's PE Ratio compare to its peers?

MANGCHEFER PE Ratio vs Peers

The above table shows the PE ratio for MANGCHEFER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.6x
590030 Southern Petrochemical Industries	6.1x	n/a	₹10.0b
531719 Bhagiradha Chemicals & Industries	27.3x	n/a	₹9.8b
532851 Insecticides (India)	15.8x	n/a	₹16.9b
500650 Excel Industries	9.4x	n/a	₹15.1b
MANGCHEFER Mangalore Chemicals & Fertilizers	14.3x	n/a	₹12.6b

Forward PE

Price-To-Earnings vs Peers: MANGCHEFER is good value based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does MANGCHEFER's PE Ratio compare vs other companies in the IN Chemicals Industry?

Price-To-Earnings vs Industry: MANGCHEFER is good value based on its Price-To-Earnings Ratio (14.3x) compared to the Indian Chemicals industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is MANGCHEFER's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MANGCHEFER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MANGCHEFER's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of MANGCHEFER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MANGCHEFER (₹106.4) is trading above our estimate of fair value (₹17.84)

Significantly Below Fair Value: MANGCHEFER is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MANGCHEFER's PEG Ratio to determine if it is good value.

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Future Growth

How is Mangalore Chemicals & Fertilizers forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.6%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Mangalore Chemicals & Fertilizers has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Mangalore Chemicals & Fertilizers's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Mangalore Chemicals & Fertilizers competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Mangalore Chemicals & Fertilizers performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MANGCHEFER has a high level of non-cash earnings.

Growing Profit Margin: MANGCHEFER's current net profit margins (3%) are lower than last year (3.1%).

Past Earnings Growth Analysis

Earnings Trend: MANGCHEFER has become profitable over the past 5 years, growing earnings by 20.2% per year.

Accelerating Growth: MANGCHEFER's earnings growth over the past year (30.9%) exceeds its 5-year average (20.2% per year).

Earnings vs Industry: MANGCHEFER earnings growth over the past year (30.9%) exceeded the Chemicals industry 29.6%.

Return on Equity

High ROE: MANGCHEFER's Return on Equity (12.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Mangalore Chemicals & Fertilizers's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MANGCHEFER's short term assets (₹18.1B) exceed its short term liabilities (₹17.3B).

Long Term Liabilities: MANGCHEFER's short term assets (₹18.1B) exceed its long term liabilities (₹3.0B).

Debt to Equity History and Analysis

Debt Level: MANGCHEFER's net debt to equity ratio (114.8%) is considered high.

Reducing Debt: MANGCHEFER's debt to equity ratio has reduced from 283.5% to 196.4% over the past 5 years.

Debt Coverage: MANGCHEFER's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MANGCHEFER's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

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Dividend

What is Mangalore Chemicals & Fertilizers's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.13%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MANGCHEFER's dividend (1.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: MANGCHEFER's dividend (1.13%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: MANGCHEFER's dividend payments have been volatile in the past 10 years.

Growing Dividend: MANGCHEFER's dividend payments have not increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.2%), MANGCHEFER's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: MANGCHEFER is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average board tenure

CEO

Shubhabrata Saha (51 yo)

0.75

Tenure

Mr. Shubhabrata Saha serves as Managing Director at Mangalore Chemicals & Fertilizers Limited since September 16, 2021. He served as Chief Executive Officer of Mahindra First Choice Wheels Ltd. Mr. Saha se...

Board Members

Experienced Board: MANGCHEFER's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: MANGCHEFER insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31