Mangalam Drugs & Organics Ltd. (MANGALAM) AI Stock Analysis

• Market Cap: ₹574.41M
• Dividend Yield: N/A
• Average Volume (3M): 5.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -24.55%
• EPS Growth: -310.57%
• Country: IN
• Employees: 432
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -6.21
• Shares Outstanding: 15,828,248
• 10 Day Avg. Volume: 11,101
• 30 Day Avg. Volume: 5,111
• PEG Ratio: -0.11
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 5.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹37.00 ▲(21.71% Upside)

The score is held back primarily by weaker financial performance (recent revenue/profit decline and margin contraction) and weak valuation signals (negative P/E). Technicals show strong short-term momentum but with extreme overbought readings, which reduces the technical score despite positive MACD.

Positive Factors

Manageable leverage

A balanced debt-to-equity and stable equity base provide financial flexibility to fund operations and capex without immediate solvency pressure. This durability supports multi-quarter resilience, allowing the company to weather cyclical demand in specialty chemicals and maintain supplier/customer relationships.

Improving operating cash flow

Stronger operating cash conversion versus net income indicates the core manufacturing business can generate cash from operations, supporting working capital and reinvestment. Over the medium term this underpins operational continuity and reduces reliance on short-term external funding for routine needs.

B2B specialty chemicals/APIs focus

A focused B2B model supplying specialty chemicals and pharma intermediates benefits from structural demand, regulatory barriers, and quality-driven customer relationships. These characteristics can produce stickier revenue streams and higher margin opportunities versus commoditized chemical segments over multiple quarters.

Negative Factors

Revenue and margin contraction

Declining top-line and contracting operating margins signal weakening competitiveness or pricing power in key products. Persisting revenue drops erode scale, reduce ability to cover fixed costs, and impair sustainable profit generation, making margin recovery more difficult without structural changes.

Inconsistent and negative free cash flow

Intermittent or negative free cash flow limits the firm's capacity to self-fund growth, invest in capacity upgrades, or reduce leverage. Over a multi-quarter horizon this can force dependence on external financing or cutbacks to maintenance capex, increasing execution risk and pressure on operations.

Rising total debt levels

Growing debt during a period of declining revenue raises interest and refinancing risks. If top-line recovery stalls, higher leverage can constrain strategic options, limit investment capacity, and amplify earnings volatility, reducing the company's ability to navigate industry headwinds over coming quarters.

Mangalam Drugs & Organics Ltd. Business Overview & Revenue Model

Company Description

Mangalam Drugs & Organics Limited manufactures and sells drugs, medicines, and allied products in India and internationally. It offers a range of active pharmaceutical ingredients, intermediates, and specialty chemicals, as well as impurities for use in anti-malarial, analgesic/anti-inflammatory, anti-hypertensive, and anti-retroviral applications. The company was incorporated in 1972 and is based in Mumbai, India.

How the Company Makes Money

Mangalam Drugs & Organics Ltd. generates revenue primarily through the production and sale of active pharmaceutical ingredients (APIs) and intermediates to pharmaceutical companies. The company's revenue model is based on wholesale and bulk sales, where it supplies its products to large pharmaceutical firms that utilize these inputs in their formulations. Key revenue streams include contracts with domestic and international clients, which provide a steady demand for its products. Additionally, MANGALAM may engage in partnerships with other companies for research and development, leading to potential royalties or revenue sharing agreements. The company's commitment to quality and compliance with regulatory standards enhances its reputation, allowing it to command competitive pricing and secure long-term contracts, which are crucial for its earnings.

Mangalam Drugs & Organics Ltd. Financial Statement Overview

Summary

Mixed fundamentals: income statement weakness (revenue and net income decline with contracting EBIT/EBITDA margins) is partly offset by a relatively stable balance sheet with manageable leverage and improved operating cash flow, though free cash flow remains inconsistent.

Income Statement

Mangalam Drugs & Organics Ltd. shows fluctuating revenue and profit margins. The most recent year indicates a decline in total revenue and net income, impacting the net profit margin negatively. EBIT and EBITDA margins have also contracted, reflecting challenges in maintaining profitability. Despite a prior trend of increasing revenue, the recent performance suggests instability in revenue growth and profitability.

Balance Sheet

The company's debt-to-equity ratio and equity ratio indicate a balanced financial position with manageable leverage. A consistent stockholders' equity and adequate asset management demonstrate financial stability. However, the increase in total debt over recent years suggests potential risk if revenue declines persist.

Cash Flow

Operating cash flow has shown improvement although free cash flow remains inconsistent. The operating cash flow to net income ratio indicates strong cash generation relative to net income, but negative free cash flow in several periods signals potential challenges in investing activities and capital expenditure management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.98B	3.18B	3.67B	3.70B	4.47B	3.80B
Gross Profit	1.26B	1.50B	188.12M	287.77M	546.89M	976.69M
EBITDA	228.74M	363.25M	174.95M	259.54M	451.84M	550.15M
Net Income	-97.62M	67.21M	-90.72M	12.70M	196.57M	279.71M
Balance Sheet
Total Assets	0.00	3.66B	3.34B	3.60B	3.28B	2.64B
Cash, Cash Equivalents and Short-Term Investments	25.89M	25.89M	11.87M	26.88M	19.55M	5.92M
Total Debt	0.00	962.30M	1.07B	885.47M	879.04M	697.06M
Total Liabilities	-1.49B	2.17B	1.98B	2.08B	1.78B	1.33B
Stockholders Equity	1.49B	1.49B	1.36B	1.52B	1.51B	1.31B
Cash Flow
Free Cash Flow	0.00	223.93M	-79.20M	116.09M	-19.60M	-38.86M
Operating Cash Flow	0.00	425.94M	39.13M	395.23M	257.09M	275.50M
Investing Cash Flow	0.00	-194.72M	-118.27M	-221.72M	-273.26M	-312.85M
Financing Cash Flow	0.00	-217.12M	52.27M	-166.17M	29.79M	26.98M

Mangalam Drugs & Organics Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MANGALAM, the sentiment is Negative. The current price of 30.4 is below the 20-day moving average (MA) of 41.29, below the 50-day MA of 33.36, and below the 200-day MA of 66.53, indicating a neutral trend. The MACD of 1.84 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MANGALAM.

Mangalam Drugs & Organics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHAGERIA	63 Neutral	₹7.90B	15.50	―	0.81%	33.39%	85.08%
GANESHBE	63 Neutral	₹5.23B	11.12	―	―	-12.30%	-26.40%
KHAICHEM	62 Neutral	₹6.29B	8.74	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HPAL	56 Neutral	₹3.57B	22.03	―	0.94%	13.33%	-21.39%
MANGALAM	55 Neutral	₹574.41M	-1.86	―	―	-24.55%	-310.57%
MANORG	54 Neutral	₹3.52B	14.54	―	―	22.53%	237.55%

Mangalam Drugs & Organics Ltd. Corporate Events

Mangalam Drugs & Organics Posts Quarterly Loss in Unaudited Results for December 2025

Mangalam Drugs & Organics Ltd. has published its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, following approval by its board on 15 January 2026 and subsequent newspaper publication as required by securities regulations. The results show a decline in performance, with losses reported at the profit-before-tax and net-profit levels for the quarter and year-to-date period, reflecting continued operational and profitability pressures that may concern investors and stakeholders monitoring the company’s financial trajectory.

Mangalam Drugs & Organics CFO and Company Secretary Resign as Board Clears Quarterly Results

Mangalam Drugs & Organics Ltd. has announced that its Board of Directors, at a meeting held on 15 January 2026, approved the company’s unaudited standalone and consolidated financial results for the quarter ended 15 January 2026, with the statutory auditors issuing reports free of modified opinions. The board also accepted the resignation of Chief Financial Officer Ajay Avinash Samant, effective 31 January 2026, and took note of the resignation of Company Secretary and Compliance Officer Anuradha Pandey, signalling an imminent reshuffle in key financial and compliance leadership roles that could be closely watched by investors and regulators.

Mangalam Drugs Files SEBI Demat Compliance Certificate for December Quarter

Mangalam Drugs & Organics Limited has submitted to both BSE and NSE a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate, issued by its registrar and share transfer agent MUFG Intime India Private Limited, confirms that all securities received for dematerialisation during the quarter were duly verified, accepted or rejected, mutilated and cancelled as required, and that corresponding entries were made in the company’s register of members and listed on the appropriate stock exchanges within the prescribed timelines, underscoring the company’s adherence to securities handling and demat compliance norms.

Mangalam Drugs & Organics Ltd. Releases Unaudited Financial Results

Mangalam Drugs & Organics Ltd. announced the publication of its unaudited financial results for the quarter and half-year ending September 30, 2025. These results, approved by the Board of Directors, were published in Financial Express and Loksatta newspapers. The company reported a decrease in net profit compared to the previous year, which may impact its financial standing and investor confidence.