Meghmani Organics still playing safe from Coronavirus

Fertiliser chemical manufacturer-Meghmani Organics Ltd has submitted a press note to the stock exchanges which suggests an impact of rapidly spreading Coronavirus (COVID-19) in its operational efficiency.

The company imports agrochemical-related raw material from China. This segment constitutes nearly 40 per cent of the total revenue of the company. It has nearly 65 per cent to 75 per cent import exposure to China, which makes around 17 per cent to 20 per cent of revenue from agrochemical business. Though the company added that it has adequate inventory for current quarter, its large operational season starts in June, which can be expected to be little worrisome for the company if the virus-related shutdown in China is not dissolved.

On operational front, the company has no major exports to China while, on the domestic front, it would focus more on B2B business. The company also added that in anticipation of shortage of supply and vertical price movements, domestic business has started to show a rise in demand.

The stock has corrected more than 23 per cent since February 2020 till today. Today, at 1.10 pm, the stock traded at Rs 50, down by three per cent on BSE.