Why is Mangalam Drugs and Organics Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.37
- The company has been able to generate a Return on Equity (avg) of 2.26% signifying low profitability per unit of shareholders funds
2
With a fall in Operating Profit of -2240.95%, the company declared Very Negative results in Mar 26
- The company has declared negative results for the last 5 consecutive quarters
- The company has declared negative results in Mar 25 after 5 consecutive negative quarters
- PAT(Q) At Rs -13.42 cr has Fallen at -73.6% (vs previous 4Q average)
- NET SALES(Latest six months) At Rs 125.67 cr has Grown at -22.18%
- ROCE(HY) Lowest at -15.53%
3
Risky - Negative EBITDA
- The company has recorded a negative EBITDA of Rs. -14.47 cr
- Over the past year, while the stock has generated a return of -62.62%, its profits have fallen by -733.2%
- The stock is trading risky as compared to its average historical valuations
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -62.62% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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
-63.35%
-1.22
51.73%
Sensex
-6.84%
-0.53
12.96%
Quality key factors
Factor
Value
Sales Growth (5y)
-9.36%
EBIT Growth (5y)
-193.83%
EBIT to Interest (avg)
-0.37
Debt to EBITDA (avg)
3.75
Net Debt to Equity (avg)
1.02
Sales to Capital Employed (avg)
1.72
Tax Ratio
8.58%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.32%
ROCE (avg)
11.27%
ROE (avg)
2.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
35
Price to Book Value
0.47
EV to EBIT
-4.68
EV to EBITDA
-10.58
EV to Capital Employed
0.74
EV to Sales
0.66
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-15.73%
ROE (Latest)
-43.09%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Bearish
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-24What is not working for the Company
PAT(Q)
At Rs -13.42 cr has Fallen at -73.6% (vs previous 4Q average
NET SALES(Latest six months)
At Rs 125.67 cr has Grown at -22.18%
ROCE(HY)
Lowest at -15.53%
OPERATING PROFIT TO INTEREST (Q)
Lowest at -1.82 times
DEBT-EQUITY RATIO(HY)
Highest at 1.02 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.76 times
PBDIT(Q)
Lowest at Rs -5.62 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at -8.35%
PBT LESS OI(Q)
Lowest at Rs -13.36 cr.
Loading Valuation Snapshot...
Here's what is not working for Mangalam Drugs
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -13.36 cr has Fallen at -55.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -8.60 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -13.42 cr has Fallen at -73.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -7.73 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at -1.82 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales - Latest six months
At Rs 125.67 cr has Grown at -22.18%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs -5.62 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at -8.35%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -13.36 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.02 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 5.76 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






