Mangalam Drugs was born in 1977, makes anti-malarial and anti-viral APIs, but currently needs an anti-loss vaccine. Despite sales of nearly ₹300 Cr, the company posted a loss of ₹9.5 Cr in FY25. Stock is at ₹80, market cap just ₹126 Cr — basically, one Titan showroom employee bonus pool. Investors are stuck like patients on expired chloroquine tablets.
2. Introduction
Picture this: a company once so pious it worked with the Clinton Foundation to supply life-saving anti-malarials. Fast-forward to now, and the company is manufacturing losses instead of drugs.
Mangalam Drugs is in the API and intermediates business: artemisinin for malaria, acyclovir for herpes, bisoprolol for BP, efavirenz for HIV — basically, if your doctor has written it, Mangalam has probably tried (and failed) to profit from it.
But the glamour ends when you look at returns: stock down -35% in one year, -9% CAGR over 5 years. ROE is crawling at 4.7%, while debt has climbed to ₹89 Cr. Promoters hold ~50%, but 13% is pledged — because clearly even they needed a loan against their shares to survive.
So, is Mangalam a turnaround story waiting for a vaccine, or a pharma zombie still alive only because investors forgot to delist it? Let’s autopsy.
3. Business Model (WTF Do They Even Do?)
Mangalam makes:
APIs like Acyclovir, Amodiaquine, Chloroquine, Efavirenz, Tenofovir.
Intermediates like Dichloroquinoline and Disoproxil.
Specialty chemicals like menthol (yes, your toothpaste cooling agent).
Future plans? Tie-up in Africa for anti-malarial plant + new APIs for inflammation and osteoporosis. Nice buzzwords, but given their track record, investors may need anti-depressants before results show.
4. Financials Overview
Quarterly Results (Jun’25 vs Jun’24 vs Mar’25)
Metric
Latest Qtr (Jun’25)
YoY (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹57.4 Cr
₹77 Cr
₹73 Cr
-25.1%
-21.4%
EBITDA
-₹5 Cr
₹8 Cr
₹10 Cr
-163%
-150%
PAT
-₹13.7 Cr
₹3 Cr
₹0 Cr
-612%
N/A
EPS (₹)
-8.67
1.69
0.09
N/A
N/A
👉 Annualised EPS negative. P/E = “Not meaningful.” Unless you want to value by Price-to-Patience ratio.
5. Valuation (Fair Value RANGE Only)
P/E Method: Can’t apply. Loss-making.
EV/EBITDA: EV ₹213 Cr / EBITDA (TTM) ₹23 Cr = 9×. Industry ~15× → FV ~₹110–₹130.
DCF: Assume turnaround, 5% growth, margins back to 8%. Discount 12%. FV ~₹90–₹100.
👉 Final FV Range = ₹90 – ₹120 (educational, not advice). CMP = ₹80. Cheap-looking, but so is expired paracetamol.
6. What’s Cooking – News, Triggers, Drama
New Export Orders: USD 2.18 million repeat order just announced. Decent, but won’t cover giant losses.
Africa API Tech Transfer: Can become big if executed, or another “PowerPoint dream.”
