Fundamental Analysis

MANALI PETROCHEMICAL LTD

Ticker : 500268 
BUY: ₹124.50
Target:  ₹140



Manali Petrochemicals Limited manufactures and sells propylene oxide (PO), propylene glycol (PG), and polyols (PY), which are used as industrial raw materials. The company is the only domestic manufacturer of propylene glycol. On the consolidated quarterly front, the company recorded net sales and operating income of Rs 489.39 crore for Q3FY22, registering a growth of 40.08 per cent as compared to Q3FY21. The operating profit ascended by 16.28 per cent to reach Rs 155.45 crore in Q3FY22 from Rs 133.69 crore posted in Q3FY21. The net profit was reported at Rs 110.09 crore in Q3FY22 from Rs 86 crore in Q3FY21, rising 28.02 per cent. The company’s science and R&D-led approach, along with customer centricity, is a key reason for its abiding performance in such challenging market conditions. The company is trading at a lower PE ratio as compared to its peers. Hence, we recommend BUY.