Stock Price Movement and Market Context
On 1 December 2025, Mangalam Drugs and Organics recorded its lowest price in the past year at Rs.26.67. This level represents a substantial fall from its 52-week high of Rs.129.90, reflecting a decline of nearly 80%. The stock has been on a continuous downward path for the last 10 trading sessions, cumulatively losing approximately 55.34% in returns during this period alone.
In comparison, the Sensex opened higher at 86,065.92 points, gaining 359.25 points (0.42%) at the start of the day and trading near its 52-week high of 86,055.86. The benchmark index has been on a three-week consecutive rise, accumulating a gain of 1.46%, supported by strength in the small-cap segment, which advanced by 0.36% today. This divergence underscores the relative underperformance of Mangalam Drugs and Organics within the Pharmaceuticals & Biotechnology sector and the broader market.
Technical Indicators Reflect Weak Momentum
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning signals sustained bearish momentum and a lack of short- to long-term price support. The underperformance relative to the sector, which outpaced Mangalam Drugs by 1.36% today, further emphasises the stock’s fragile technical stance.
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Financial Performance and Profitability Concerns
Mangalam Drugs and Organics has reported negative results for the last three consecutive quarters. The latest quarterly figures show a net loss after tax (PAT) of Rs. -7.35 crores, representing a decline of 201.2% compared to the previous four-quarter average. Net sales for the quarter stood at Rs.49.54 crores, the lowest recorded in recent periods, while interest expenses reached Rs.5.03 crores, the highest in the company’s recent history.
The company’s return on equity (ROE) averaged 5.83%, indicating limited profitability relative to shareholders’ funds. Additionally, the debt servicing capacity appears constrained, with a debt to EBITDA ratio of 5.66 times, signalling elevated leverage and financial risk.
Shareholding and Valuation Risks
Promoter shareholding includes a significant proportion of pledged shares, currently at 34.58%. This figure has increased by 21.35% over the last quarter, which may exert additional downward pressure on the stock price in volatile market conditions. The stock’s valuation metrics suggest it is trading at levels considered risky compared to its historical averages.
Over the past year, Mangalam Drugs and Organics has generated a return of -77.33%, while its profits have declined by 306.3%. This performance contrasts with the Sensex’s 7.54% gain over the same period, highlighting the stock’s relative underperformance.
Long-Term and Recent Performance Trends
The stock has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This persistent lag reflects challenges in both near-term results and longer-term growth prospects within the Pharmaceuticals & Biotechnology sector.
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Summary of Key Metrics
The stock’s 52-week low of Rs.26.67 marks a critical price point after a year characterised by significant declines in market value and profitability. The company’s financial indicators, including net sales, PAT, interest expenses, and leverage ratios, illustrate the pressures faced by Mangalam Drugs and Organics. Meanwhile, the broader market and sector indices have shown resilience, with the Sensex approaching its 52-week high and small caps leading gains.
Trading below all major moving averages and with a high proportion of pledged promoter shares, the stock remains under close observation for its price behaviour and fundamental developments.
Market Environment and Sector Overview
The Pharmaceuticals & Biotechnology sector continues to be a focal point for investors, with varying performances across companies. While Mangalam Drugs and Organics has experienced a notable decline, other stocks within the sector have demonstrated relative strength. The Sensex’s current bullish technical setup, trading above its 50-day and 200-day moving averages, contrasts with the stock’s downward momentum.
Conclusion
Mangalam Drugs and Organics’ fall to a 52-week low of Rs.26.67 reflects a combination of subdued financial results, elevated debt levels, and market pressures. The stock’s performance over the past year and recent months highlights the challenges faced by the company within a competitive and evolving pharmaceutical landscape. Investors and market participants will continue to monitor the stock’s price action and financial disclosures closely as the company navigates this phase.
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