Why is Mangalam Organic falling/rising?

Jul 14 2025 08:56 PM IST
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As of 14-Jul, Mangalam Organics Ltd is currently priced at 560.00, reflecting a 0.61% increase, but has seen a significant drop in delivery volume. Despite strong annual returns of 39.23% and consistent quarterly performance, concerns about long-term growth due to declining operating profit may impact future price stability.
As of 14-Jul, Mangalam Organics Ltd is experiencing a price increase, currently at 560.00, reflecting a change of 3.4 (0.61%) upward. Today's price summary indicates that the stock has outperformed its sector by 1.22%. However, it is noteworthy that the stock's delivery volume has significantly decreased, falling by 99.68% against the 5-day average, suggesting a decline in investor participation. Despite this, the company has shown strong performance over the past year, generating a return of 39.23%, which is substantially higher than the market's average return of 0.26%. The company has also reported positive results for the last seven consecutive quarters, with impressive metrics such as a return on capital employed (ROCE) of 6.74% and a profit before tax (PBT) of Rs 6.58 crore, contributing to its attractive valuation compared to peers.

In the broader market context, while Mangalam Organics has shown a positive return of 0.90% over the past month, it has underperformed the benchmark index, Sensex, which has gained 1.40% in the same period. The stock's year-to-date performance of 27.10% also surpasses the Sensex's 5.27% increase, indicating a strong overall performance despite recent short-term fluctuations. However, the long-term growth outlook appears concerning, as the operating profit has declined at an annual rate of 24.17% over the last five years, which could pose risks to sustained price increases in the future.
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