Mangalam Organics Ltd (MANORG) AI Stock Analysis

• Market Cap: ₹3.52B
• Dividend Yield: N/A
• Average Volume (3M): 489.00
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.05
• Revenue Growth: 22.53%
• EPS Growth: 237.55%
• Country: IN
• Employees: 307
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.75
• Shares Outstanding: 8,564,440
• 10 Day Avg. Volume: 561
• 30 Day Avg. Volume: 489
• PEG Ratio: 0.14
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -4.22
• 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: 54 Neutral
• Price Target: ₹420.00 ▼(-13.45% Downside)

The score is held back primarily by weak cash flow (negative operating cash flow and sharply lower free cash flow) and low profitability/ROE despite improving margins and revenue growth. Technicals also weigh on the score with the stock trading below major moving averages and sub-neutral momentum. Valuation is moderate with a P/E of 16.55, but no dividend yield data is available to add support.

Positive Factors

Revenue and gross margin improvement

Sustained revenue growth with a marked jump in gross margin indicates improving unit economics and better cost or pricing dynamics. Over 2–6 months this supports reinvestment capacity and competitiveness in speciality chemicals, underpining durable operating leverage if trends continue.

Specialized terpene product portfolio

A focused portfolio in terpene-derived specialty chemicals supplies multiple end markets (fragrance, flavor, pharmaceutical, industrial). This technical specialization creates higher switching costs, diversified end-market demand and structural differentiation that supports stable revenue streams long term.

Balanced capital structure

A moderate debt-to-equity ratio and near-50% equity ratio imply a balanced financial structure that reduces solvency risk and gives management funding flexibility. Over months this buffer helps absorb cyclical shocks and supports incremental investment without excessive refinancing strain.

Negative Factors

Negative operating cash flow and collapsing FCF

Negative operating cash flow and a sharp -329% drop in free cash flow signal persistent cash-generation weakness. This durable shortfall can constrain working capital, capex and R&D funding, increase reliance on external finance, and impair strategic flexibility over months.

Low net profitability and ROE

Thin net margins and low ROE reflect limited ability to convert sales into shareholder returns despite margin improvements. Persistently low profitability undermines reinvestment capacity, heightens sensitivity to cost shocks, and limits the firm's ability to build durable competitive advantages.

Exposure to input costs and end-market demand

Revenue and margin volatility are structurally linked to pine-derived raw material availability and demand from downstream industries. This exposure increases earnings cyclicality and operational risk, making long-term planning and margin durability contingent on commodity and end-market stability.

Mangalam Organics Ltd Business Overview & Revenue Model

Company Description

Mangalam Organics Limited manufactures, supplies, and exports terpene chemicals and synthetic resins in India. It operates through Terpene Operations and Synthetic Resin Operations segment. The company offers terpene products, including camphor, camphene, isobornyl acetate, Isoborneol, dipentene, sodium acetate trihydrate, camphor oil, pine oil, and pine tar; resin products, such as terpene phenolic and alkyl phenolic resins, penta ester gums, and glycerol ester gums, as well as gum rosins; and camphor tablets. Its camphor products have application in household usage offered under Mangalam brand name; and other chemical products are used in the adhesives, tires, rubber, chewing gums, and printing ink industries. The company was formerly known as Dujodwala Products Limited and changed its name to Mangalam Organics Limited in October 2013. Mangalam Organics Limited was incorporated in 1981 and is headquartered in Mumbai, India.

How the Company Makes Money

Mangalam Organics generates revenue primarily through the sale of its specialty chemicals, which serve as essential intermediates for various end-use applications in pharmaceuticals, agrochemicals, and other industries. The company's revenue model is based on direct sales to manufacturers and distributors, allowing for consistent cash flow from both domestic and international markets. Key revenue streams include bulk orders from large-scale industrial clients as well as smaller contracts with niche firms requiring specialized chemical solutions. Additionally, strategic partnerships with research and development organizations enhance its product offerings and market reach, contributing significantly to its financial performance.

Mangalam Organics Ltd Financial Statement Overview

Summary

Revenue grew 7.39% and gross margin improved to 48.40%, but profitability remains thin (net margin 2.38%, ROE 4.29%). Cash flow is the key weakness: operating cash flow turned negative and free cash flow growth declined sharply (-329.40%), raising liquidity and reinvestment risk.

Income Statement

Mangalam Organics exhibited a strong revenue growth of 7.39% from 2024 to 2025, with an improved gross profit margin of 48.40% in 2025, up from 22.89% in 2024. However, the net profit margin remains low at 2.38% due to increased expenses, limiting profitability. The EBIT and EBITDA margins also show improvement, indicating efficient operations despite the low net income.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.93 in 2025, indicating a balanced use of debt and equity. The return on equity (ROE) is low at 4.29%, reflecting limited profitability relative to shareholder investment. The equity ratio is satisfactory at 47.02%, suggesting a stable financial structure but highlighting potential risks if profits do not improve.

Cash Flow

Cash flow performance is concerning, with negative free cash flow growth of -329.40% from 2024 to 2025. Operating cash flow turned negative, indicating cash generation issues. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies. These factors pose a risk to liquidity and future investment capability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.59B	5.30B	4.94B	4.93B	4.91B	3.38B
Gross Profit	2.89B	2.57B	1.13B	701.20M	1.47B	1.72B
EBITDA	734.82M	589.13M	390.38M	-24.27M	924.25M	1.28B
Net Income	231.55M	125.97M	42.86M	-272.25M	537.43M	847.79M
Balance Sheet
Total Assets	0.00	6.24B	4.85B	5.06B	5.60B	3.11B
Cash, Cash Equivalents and Short-Term Investments	10.10M	189.27M	20.19M	12.79M	12.78M	343.55M
Total Debt	0.00	2.72B	1.73B	1.90B	2.12B	243.11M
Total Liabilities	-2.93B	3.30B	2.05B	2.30B	2.56B	596.26M
Stockholders Equity	2.93B	2.93B	2.81B	2.76B	3.04B	2.52B
Cash Flow
Free Cash Flow	0.00	-751.15M	327.48M	361.57M	-1.84B	-27.60M
Operating Cash Flow	0.00	-78.44M	727.23M	769.23M	-841.04M	262.79M
Investing Cash Flow	0.00	-670.47M	-395.09M	-407.80M	-995.25M	-281.47M
Financing Cash Flow	0.00	736.26M	-325.52M	-355.77M	1.83B	22.66M

Mangalam Organics Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 485.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MANORG, the sentiment is Negative. The current price of 485.25 is above the 20-day moving average (MA) of 469.34, above the 50-day MA of 475.26, and below the 200-day MA of 513.57, indicating a bearish trend. The MACD of -15.40 indicates Positive momentum. The RSI at 32.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MANORG.

Mangalam Organics Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTLCONV	73 Outperform	₹5.05B	7.40	―	0.81%	34.91%	-19.40%
AARTISURF	69 Neutral	₹3.51B	19.63	―	0.25%	28.46%	-2.09%
MAHASTEEL	66 Neutral	₹12.51B	123.58	―	―	11.83%	124.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANGALAM	55 Neutral	₹574.41M	-1.86	―	―	-24.55%	-310.57%
MANORG	54 Neutral	₹3.52B	14.54	―	―	22.53%	237.55%

Mangalam Organics Ltd Corporate Events

Mangalam Organics Receives GST Investigation Summons

Mangalam Organics Limited has announced that it received a summons from the Assistant Commissioner of State Tax, Mumbai, under the Maharashtra and Central Goods and Services Tax Acts. This summons is part of an investigation into the company’s business activities and GST compliance. The company is cooperating fully with the authorities and has stated that the summons does not have any material financial impact on its operations. Mangalam Organics has committed to keeping the stock exchanges informed of any significant developments.