Recent Price Movement and Market Context
On 9 December 2025, Mangalam Drugs and Organics recorded its lowest price in the past year at Rs.23.77. This level represents a notable drop from its 52-week high of Rs.129.90, indicating a substantial contraction in market value. The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend.
Over the last two trading sessions, the stock has declined by approximately 3.87%, with a day-on-day change of -1.62%, underperforming the Pharmaceuticals & Biotechnology sector by 1.5%. This contrasts with the broader market, where the Sensex opened lower at 84,742.87 points, down 0.42%, but remains within 1.64% of its 52-week high of 86,159.02. The Sensex is currently trading above its 50-day and 200-day moving averages, reflecting a generally bullish market environment. Additionally, the BSE Small Cap index gained 0.39% today, highlighting a divergence between Mangalam Drugs and smaller-cap stocks.
Financial Performance and Profitability Concerns
Mangalam Drugs and Organics has faced a challenging financial year, with its one-year stock return at -79.76%, significantly lagging behind the Sensex’s 3.95% gain over the same period. The company’s net sales for the latest six-month period stand at Rs.106.89 crores, showing a contraction of 31.69% compared to previous periods. Correspondingly, the company reported a net loss after tax (PAT) of Rs.-21.15 crores, also reflecting a decline of 31.69%.
Interest expenses have risen by 20.61% to Rs.9.07 crores in the latest six months, adding to the financial strain. The company’s return on equity (ROE) averages 5.83%, indicating limited profitability relative to shareholders’ funds. Furthermore, Mangalam Drugs has reported negative results for three consecutive quarters, underscoring ongoing difficulties in generating positive earnings.
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Debt Levels and Shareholder Structure
The company’s debt servicing capacity remains constrained, with a Debt to EBITDA ratio of 5.66 times, indicating a relatively high leverage position. This elevated ratio suggests that earnings before interest, taxes, depreciation, and amortisation are insufficient to comfortably cover debt obligations, which may weigh on financial flexibility.
Promoter shareholding includes a significant proportion of pledged shares, currently at 34.58%. This figure has increased by 21.35% over the last quarter, potentially exerting additional pressure on the stock price in a declining market environment. High pledged shareholding can lead to forced selling if margin calls arise, contributing to downward momentum.
Historical Performance and Market Comparison
Over the past three years, Mangalam Drugs and Organics has consistently underperformed the BSE500 index, reflecting persistent challenges in maintaining competitive market positioning. The stock’s cumulative return of -79.76% over the last year contrasts sharply with the broader market’s positive trajectory. Profitability metrics have also shown a marked decline, with profits falling by over 300% during this period, highlighting the scale of financial difficulties faced by the company.
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Sector and Market Environment
Mangalam Drugs and Organics operates within the Pharmaceuticals & Biotechnology sector, which has seen mixed performance in recent sessions. While the broader market indices such as the Sensex maintain a near-record high and positive momentum, Mangalam Drugs’ stock price trajectory diverges notably. The sector’s performance today was outpaced by small-cap stocks, which gained 0.39%, further emphasising the stock’s relative weakness.
The company’s current market capitalisation grade is moderate, but the stock’s trading below all major moving averages suggests a lack of upward momentum. This technical positioning, combined with fundamental challenges, has contributed to the stock’s recent decline to its 52-week low.
Summary of Key Metrics
To summarise, Mangalam Drugs and Organics’ key financial and market indicators as of December 2025 include:
- 52-week low price: Rs.23.77
- 52-week high price: Rs.129.90
- One-year stock return: -79.76%
- Net sales (latest six months): Rs.106.89 crores, down 31.69%
- PAT (latest six months): Rs.-21.15 crores, down 31.69%
- Interest expense (latest six months): Rs.9.07 crores, up 20.61%
- Debt to EBITDA ratio: 5.66 times
- Promoter pledged shares: 34.58%, increased by 21.35% in last quarter
- Return on equity (average): 5.83%
The stock’s recent performance and financial data reflect a period of considerable difficulty for Mangalam Drugs and Organics, with multiple indicators pointing to ongoing pressures in profitability, leverage, and market valuation.
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