Mangalam Drugs (MANGALAM)
Asset PlayScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹28.07 |
| Market Cap | ₹44.43 Cr |
| P/E Ratio | 0 |
| ROCE | 8.03% |
| ROE | -35.23% |
| Dividend Yield | 0% |
| Profit Growth | -798.57% |
| Debt/Equity | 1.09 |
| Sales Growth | -7.5% |
| Promoter Holding | 35.64% |
| 52-Week Range | ₹22.8 — ₹79.49 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹65.12 |
Strengths
- Price of ₹28.25 is significantly below book value of ₹87.80, giving a P/B of 0.32.
- ROCE of 8.03% suggests some operational return before financing costs.
- Debt/Equity of 0.80 is not excessively high for a small-cap pharmaceutical company.
- Promoter holding of 35.64% provides some alignment with public shareholders.
Concerns
- Latest quarter shows a net loss of ₹10 Cr on sales of ₹58 Cr, with annual sales growth of -34.07%.
- ROE is deeply negative at -20.76%, and profit growth is -798.57%, indicating severe earnings deterioration.
- Piotroski F-Score of 3/9 signals weak financial strength and poor fundamental health.
- No dividend yield; shareholders get no income while waiting for any recovery.
AI Analysis
At ₹28.25, Mangalam Drugs wears the costume of a bargain: a P/B of 0.32 against book value of ₹87.80, and a market cap of just ₹46 Cr. Graham would tell us to pay attention to the balance sheet, but he would also insist that a cheap share of a bad business is not automatically a good investment. The latest quarter tells me the engine is sputtering: sales of ₹58 Cr and a net loss of ₹10 Cr. Sales have fallen 34% over the year, and profit growth is -798%, meaning that whatever earnings power existed has turned into losses. With ROE at -20.76%, the book value itself is being eroded. A Piotroski score of 3/9 adds to my caution—this is a company with weak financial health, not a hidden gem. ROCE is 8.03%, which suggests operations can still earn an acceptable return before financing costs, but the debt/equity of 0.80 and negative earnings mean leverage is not working for shareholders. There is no dividend; I receive no income while I wait. Promoter holding at 35.64% is moderate, but I want committed owners who act like operators. The 52-week range, from ₹86.90 down to ₹22.80, shows how brutally the market has repriced this share. I am not willing to call it a turnaround without evidence. It is, at best, an asset play. I would need to see sales stabilise, losses shrink, and the balance sheet stay intact before I put my own money beside this price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer