Why is Mangalam Drugs and Organics Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.66 times
- The company has been able to generate a Return on Equity (avg) of 5.83% signifying low profitability per unit of shareholders funds
2
The company has declared Negative results for the last 3 consecutive quarters
- NET SALES(Latest six months) At Rs 106.89 cr has Grown at -31.69%
- PAT(Latest six months) At Rs -21.15 cr has Grown at -31.69%
- INTEREST(Latest six months) At Rs 9.07 cr has Grown at 20.61%
3
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -79.30%, its profits have fallen by -306.3%
4
34.58% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
- The proportion of pledged holdings has increased by 21.35% over the last quarter
5
Below par performance in long term as well as near term
- Along with generating -79.30% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Mangalam Drugs for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Mangalam Drugs
-79.3%
-1.49
53.17%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-5.19%
EBIT Growth (5y)
-169.99%
EBIT to Interest (avg)
1.36
Debt to EBITDA (avg)
3.75
Net Debt to Equity (avg)
0.58
Sales to Capital Employed (avg)
1.72
Tax Ratio
12.04%
Dividend Payout Ratio
0
Pledged Shares
34.58%
Institutional Holding
0.11%
ROCE (avg)
11.27%
ROE (avg)
5.83%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
34
Price to Book Value
0.27
EV to EBIT
-21.62
EV to EBITDA
10.93
EV to Capital Employed
0.54
EV to Sales
0.47
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-2.49%
ROE (Latest)
-13.07%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Bearish
Bearish
Technical Movement
2What is working for the Company
OPERATING CF(Y)
Highest at Rs 42.76 Cr
-20What is not working for the Company
NET SALES(Latest six months)
At Rs 106.89 cr has Grown at -31.69%
PAT(Latest six months)
At Rs -21.15 cr has Grown at -31.69%
INTEREST(Latest six months)
At Rs 9.07 cr has Grown at 20.61%
Loading Valuation Snapshot...
Here's what is working for Mangalam Drugs
Operating Cash Flow - Annually
Highest at Rs 42.76 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Here's what is not working for Mangalam Drugs
Net Sales - Quarterly
At Rs 49.54 cr has Fallen at -33.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 74.76 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -7.35 cr has Fallen at -201.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -2.44 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 49.54 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Interest - Quarterly
Highest at Rs 5.03 cr
in the last five quarters and Increased by 24.50 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)






