Mangalore Chemicals & Fertilizers Ltd (BUY)

Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs.2,470 Crore (FY 2008-2009), is the only manufacturer of chemical fertilizers in the state of Karnataka. The factory is strategically located at Panambur, 9 km north of Mangalore City, on the banks of the Gurpur River, in front of the New Mangalore Port. The plant is well connected, both by rail and road. The West Coast National Highway (NH-l7) from Kochi to Mumbai separates MCF from the New Mangalore Port.

The Company is a part of the UB Group with Group shareholding of 30.44%. Dr. Vijay Mallya is Chairman of the Board of Directors. The operations are managed by a team of highly dedicated and experienced professionals.

The New Mangalore Port is an all-weather port capable of handling ships up to 30 feet draft. Naphtha, Fuel Oil, Ammonia and Phosphoric Acid - the main raw material are obtained through the port. The plant site is well linked, both by rail and road.

The Company has capacity to manufacture 2,17,800 MT Ammonia (intermediate product), 3,79,500 MT Urea, 2,55,500 MT Phosphatic Fertilizers (DAP & NP 20:20:00:13), 15,330 MT Ammonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric Acid (SAP) annually. . The design and engineering of the Ammonia/Urea plants was done by Humphreys & Glasgow Limited, London, a leading international firm in the fertilizer field and their associates, Humphreys & Glasgow Consultants Pvt. Ltd., Bombay. (The firm is now merged with Jacobs Engineering, USA). The Phosphatic plant is designed and engineered by Toyo Engineering Corporation, Japan. PDIL and Furnace Fabrica the Indian firms were involved in the construction of ABC and SAP respectively.

The construction work started with the first pile driven on October 15, 1972 by the then Chief Minister, Shri D. Devaraj Urs.

The Ammonia/Urea plants were commissioned in March 15, 1976.

performance

Mangalore Chemicals & Fertilisers recorded an around 127 per cent increase in net profit to Rs 33.82 crore for the second quarter ended September 30 on higher sales.The company, which predominantly deals in the fertiliser segment, had recorded a Rs 14.9 crore net profit during the year-ago period.

Equity -118.55 cr.

last year profit-56.49 cr

for six months it has posted 46.36cr vs 22.39cr last year.company having debit only 98cr.

and paying last 5 years dividend .and market cap is only 475cr.

buy for long term investment at 40.rs it has a potential to mark three digit mark in a year time.