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

• Market Cap: ₹491.63M
• Dividend Yield: N/A
• Average Volume (3M): 5.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• 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: 50 Neutral
• Price Target: ₹31.00 ▲(1.97% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by weak technicals (below key long-term averages with soft momentum) and a negative P/E that limits valuation support. Financial performance is mixed: profitability and revenue recently deteriorated, but leverage appears manageable and operating cash flow has improved, preventing a lower score.

Positive Factors

Manageable leverage and balanced balance sheet

A balanced capital structure and consistent shareholders' equity provide durable financial stability. Manageable leverage increases the company's ability to absorb cyclical downturns, access financing on reasonable terms, and preserve operational flexibility over the next 2–6 months.

Improving operating cash flow and cash generation

Improving operating cash flow and a strong OCF-to-net-income ratio reflect durable cash conversion from core operations. Better cash generation supports working capital needs, debt servicing and targeted reinvestment, enhancing operational resilience over a multi-month horizon.

B2B specialty chemicals and API manufacturing with domestic and export channels

A B2B focus on specialty chemicals and APIs exposes the company to structurally steady pharma and industrial demand, with diversified domestic and export channels. This business model supports repeat orders, quality-driven barriers to entry, and steady multi-month revenue corridors.

Negative Factors

Declining revenue and contracting margins

Material revenue decline and margin compression reduce operating leverage and long-term profitability. Persisting lower sales and squeezed margins will weaken cash flows, limit reinvestment capacity, and raise execution risk over the next several months.

Inconsistent and negative free cash flow in several periods

Intermittent negative free cash flow constrains the firm's ability to fund capex, pay down debt, or return capital without external financing. Over a 2–6 month horizon this increases financing flexibility risk and could force trade-offs between growth and balance-sheet repair.

Rising total debt amid weakening top-line

A rising debt level alongside falling revenue elevates leverage and refinancing risk. If weaker sales continue, interest burdens could erode free cash flow and limit strategic options, making the business more vulnerable to external shocks over the medium term.

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. primarily makes money by manufacturing and selling its chemical and pharmaceutical intermediate products to business customers (B2B). Revenue is generated from (1) domestic sales to Indian customers and (2) export sales to international customers, with earnings driven by sales volumes and realized selling prices across its product portfolio. The company’s profitability is influenced by input/raw material costs, plant utilization/scale, product mix (higher-margin specialty products vs. commoditized products), and compliance/quality requirements typical for pharma-linked supplies. Specific details on segment-wise revenue split, named long-term supply partnerships, customer concentration, or contract structures are not available (null).

Mangalam Drugs & Organics Ltd. Financial Statement Overview

Summary

Financials are mixed: income statement weakness (declining revenue, net income, and 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.68B	3.18B	3.67B	3.70B	4.47B	3.80B
Gross Profit	1.03B	1.50B	188.12M	287.77M	546.89M	976.69M
EBITDA	112.23M	363.25M	174.95M	259.54M	451.84M	550.15M
Net Income	-197.98M	67.21M	-90.72M	12.70M	196.57M	279.71M
Balance Sheet
Total Assets	3.17B	3.66B	3.34B	3.60B	3.28B	2.64B
Cash, Cash Equivalents and Short-Term Investments	96.75M	25.89M	11.87M	26.88M	19.55M	5.92M
Total Debt	949.21M	962.30M	1.07B	885.47M	879.04M	697.06M
Total Liabilities	1.89B	2.17B	1.98B	2.08B	1.78B	1.33B
Stockholders Equity	1.28B	1.49B	1.36B	1.52B	1.51B	1.31B
Cash Flow
Free Cash Flow	19.14M	223.93M	-79.20M	116.09M	-19.60M	-38.86M
Operating Cash Flow	77.10M	425.94M	39.13M	395.23M	257.09M	275.50M
Investing Cash Flow	-57.59M	-194.72M	-118.27M	-221.72M	-273.26M	-312.85M
Financing Cash Flow	-11.63M	-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: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 31.17, below the 50-day MA of 35.69, and below the 200-day MA of 59.44, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.07 is Neutral, 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	₹6.45B	17.61	―	0.81%	33.39%	85.08%
GANESHBE	63 Neutral	₹5.58B	9.06	―	―	-12.30%	-26.40%
KHAICHEM	62 Neutral	₹5.05B	9.32	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HPAL	56 Neutral	₹2.89B	58.29	―	0.94%	13.33%	-21.39%
MANORG	54 Neutral	₹3.45B	24.26	―	―	22.53%	237.55%
MANGALAM	50 Neutral	₹491.63M	-1.11	―	―	-24.55%	-310.57%

Mangalam Drugs & Organics Ltd. Corporate Events

Mangalam Drugs & Organics Reshuffles Board, Appoints New CFO

Mangalam Drugs & Organics Limited’s board met on 6 February 2026 and approved several key changes in its leadership structure and governance. The board accepted the resignation of independent director Rukmesh P. Dhandhania with effect from 16 January 2026, appointed Jeevan M. Dalvi as Chief Financial Officer effective 6 February 2026, and cleared the re-appointment of Dr. Praveen Saxena as an independent director for a second five-year term starting 21 March 2026, subject to shareholder approval by special resolution. These decisions signal an ongoing refresh of the company’s financial leadership and a continuation of experienced independent oversight on the board, developments that are likely to be closely watched by investors for their implications on corporate governance and financial management.

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.