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Meghmani Organics Ltd BUY TECHNICAL
CMP: `50.35 (As on 30th June 2017)
Buy: `48-46 PICK
Target Price: `65-76
Stop-Loss: `42 Meghmani Organics Limited is an India-based
manufacturer of pigment and pesticide products.
Meghmani Organics Ltd Its segments include pigments, agro chemicals
and basic chemical. The pigments segment
5 ARIHANT CAPITAL ยก JULY 2017 manufactures and distributes phthalocynine green
7, copper phthalocynine blue, alpha blue and beta
blue. The agro chemicals segment manufactures
and distributes technical, intermediates and
formulations of insecticides. The basic chemicals
segment includes basic chemicals, which undergo
processing in various stages before being converted
into downstream chemicals that are used by the
agriculture sector and also by consumers. The
others segment includes trading activity. The
company produces pesticides for crop and non-
crop applications, such as for public health, insect
control in wood preservation and food grain
storage. Its brands include Megastar, Megacyper,
Megaban, Synergy and Courage. Its basic chemicals
portfolio includes caustic soda, chlorine and
hydrogen.
Technical Outlook:
On the quarterly chart, the stock has witnessed
strong consolidation and any close above 53 levels
would give a quarterly breakout which would
propel upside momentum. Further, the daily RSI is
gaining momentum.
Hence we recommend buying in stock on a
decline up to Rs 48-46 levels with a stop loss of
Rs 42 for a target of Rs 65-76 levels.