Company story:
MPL is almost debt free, cash rich, consistent dividend
paying company.
MPL is only domestic producer of Polyol, which is used in
the manufacture of Polyurethane Foams (PU) which in turn is used in automobile
seats, furniture, garments and mattresses. Polyols have a healthy demand from
auto, refrigerators and mattresses segments; they contributed ~56% of MPL's
total revenues.
MPL is also leader in production and marketing of Propylene Oxide, Propylene Glycol in India. The company operates two production facilities at Manali to manufacture Propylene Oxide, Propylene Glycol and Polyol.
Propylene Oxide is important commodity chemical used in the manfacturing of thousands of eveyday products.
Propylene Glycol is used as solvent in cosmetics, pharmaceuticals, engine coolent etc.
CMP: 17.75
Market cap of Rs.303cr for company with sales turnover of
Rs.554.44cr (2013-2014) and net profit of Rs.29.05cr indicates it is undervalued; also
company has cash reserves of Rs. 125cr. This is typical cash cow.
Investment in MPL is for those who expect consistent dividend and growth of 25% plus per year.
Note: I have invested in MPL. Please do not consider this as investment advise, this is just for educational purpose.
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