Mangalam Industr (537800)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Positive dividend yield of 1.04% provides a small return while the business is underperforming.
• Book value is positive at ₹0.22, and ROCE of 6.97% shows some capital is being deployed.
• The company is still generating revenue (latest quarter sales ₹1 crore), so it is not a dormant shell.
• The 52-week move from ₹0.58 to ₹4.05 indicates strong market interest, though I distrust that as a value signal.

Concerns

• Extreme valuation: P/E of 159.08 and P/B of 18.41 are far above any plausible earnings/book support.
• Profit collapsed by 97.67%, ROE is only 2.95%, and latest quarter net profit is nil.
• Sales are declining by 14.89% and Piotroski F-Score of 3/9 points to weak financial health.
• Critical data are missing: debt/equity, promoter holding, and FairStock score are unavailable, creating a governance and leverage blind spot.

AI Analysis

I start by asking what I get for my rupee. Here I get an NBFC with book value of just ₹0.22, but I must pay ₹4.05—roughly 18 times book. The earnings story is worse: at a P/E of 159, the company is priced for perfection while delivering anything but. Return on equity is only 2.95%, and return on capital employed just 6.97%. Sales have fallen by 14.89%, and profit has collapsed by 97.67%. The latest quarter shows sales of only ₹1 crore and net profit of nil. This is not a wonderful business; this is a capital base earning less than a fixed deposit, wrapped in a stock that has moved from ₹0.58 to ₹4.05. That move is speculation, not investment. The Piotroski score of 3 out of 9 supports my caution. Weak profitability, thin returns, and a dividend yield of 1.04% do not give me a margin of safety. I also know too little: debt/equity is not available and promoter holding is not available. For an NBFC, undisclosed leverage and governance data make analysis impossible. Graham taught me to value tangible facts, not hopes. Here the facts are poor. Could this be a turnaround? Possibly, but I do not buy possibilities. I need proof: consistent earnings, rising book value, higher ROE, and honest disclosure. Until then, the rational action is to pass. I would rather lose an opportunity than lose my capital. With a price at the top of its 52-week range and no fundamental improvement, this is a too-hard pile stock. I will watch it, but I will not own it.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer