01 — At a Glance
The Birla Clan’s Forgotten Cement Baby: Still Making Brick by Brick
- 52-Week High / Low₹940 / ₹640
- Q3 FY26 Revenue₹421 Cr
- Q3 FY26 PAT₹12.1 Cr
- TTM EPS₹29.32
- Annualised EPS (Q1-Q3 Avg × 4)₹26.96
- Book Value / Share₹327
- Price to Book2.50x
- 5-Year Sales CAGR6.48%
- 5-Year Profit CAGR-8.96%
- Installed Capacity4.4 MTPA
Flash Summary: Mangalam Cement delivered Q3 FY26 PAT of ₹12.1 crore with quarterly profit jumping 54.9% YoY (but quarterly revenue fell 3.88%). The stock at ₹816 trades at 27.5x P/E, which is expensive for a regional cement player with 5.70% ROE that hasn’t figured out how to grow profitably in the last five years. But wait—the 3-year CAGR is 48.8%, so someone is definitely buying. The board just decided to re-appoint Anshuman V. Jalan as Whole-time Director. Riveting stuff.
02 — Introduction
Fifty Years of Grinding Limestone (And Our Patience)
Mangalam Cement Limited was born in 1976, which means it’s older than most of India’s internet connections and somehow still managing to exist without TikTok fame. It’s a professionally managed company under Smt. Vidula Jalan of the B.K. Birla group — a name that carries more Birla legacy baggage than a first-class cabin on Air India.
The company has two cement plants: one in Morak, Rajasthan (the clinker factory, because every cement company needs to sound like a sci-fi villain), and one in Aligarh, Uttar Pradesh (for grinding, not for grinding our bones into submission). Their installed capacity sits at 4.4 MTPA, which in English translates to “enough to make a dent in North and Central India’s dreams, but not enough to make UltraTech or Grasim lose sleep.”
Q3 FY26 showed quarterly revenue of ₹421 crore but—plot twist—down 3.88% YoY. Net profit was ₹12.1 crore with a 54.9% jump YoY. Translation: they sold less cement at higher margins. Either they found the secret formula, or the competition took a holiday. The cement industry is a cyclical party, and Mangalam showed up late but negotiated better drink prices. Meanwhile, CARE Ratings just reaffirmed their A+/Stable rating because, apparently, being operationally efficient and cost-optimizing is still fashionable in April 2025.
CARE Ratings Note (Apr 2025): CARE A+; Stable reaffirmed for ₹1,163.41 crore in facilities. The rating takes note of MCL’s “healthy scale,” “adequate liquidity,” and “effective cost management.” Translation: Mangalam is boring but stable. Like eating boiled rice daily—it keeps you alive, but don’t expect fireworks.
03 — Business Model: Grinding Rocks Since 1977
How to Make Cement and Annoy UltraTech in Nine Boring Steps
Mangalam Cement does what every other cement company does: dig up limestone from Rajasthan, mix it with fly ash and gypsum, cook it at 1,500°C (because apparently lukewarm won’t cut it), grind it into powder, bag it, and sell it to construction workers who don’t care about your captive power plants. They sell under the brand “Birla Uttam Cement” and a newer variant called “Mangalam ProMaxX”—because naming a cement product after an anime character was apparently a strategy choice.
They produce two grades: Pozzolana Portland Cement (PPC, 67-69% of sales volume) and Ordinary Portland Cement (OPC, 31-33%). PPC is the popular kid because it’s cheaper to make and commands premium pricing. Smart business if you’re comfortable living in North and Central India forever. Their sales are concentrated: Rajasthan + Uttar Pradesh = 77-78% of total sales. If Rajasthan sneezes, Mangalam catches pneumonia.
The business model is simple: captive limestone mines meet 90% of raw material needs (cost-efficient), captive coal power plants generate 76% of their power requirement (nice margin play), and they’ve built a network of 51 sales promoters, 1,054 dealers, and 2,791 retailers. It’s a bootstrap operation with backward integration and a distributed sales force. Nothing fancy, nothing broke—just the kind of company that your grandfather would have invested in had he been patient enough to wait 50 years.
PPC Mix67-69%higher margin
Captive Limestone~90%of requirement
Own Power76%of total need
Geo FocusNorth+CentralIndia only
Fun Fact: Mangalam is eligible for subsidies and exemptions from Governments of Rajasthan and U.P. as part of their expansion packages that run until 2027. Essentially, the government is paying them to stay. Meanwhile, UltraTech has to compete on actual merit. Kidding, obviously—UltraTech still crushes everyone.
04 — Financials Overview
Q3 FY26: The Numbers Don’t Lie. They Just Confuse.
Result type: Quarterly Results | Q1 FY26 EPS: ₹5.34 | Q2 FY26 EPS: ₹7.31 | Q3 FY26 EPS: ₹4.13 | Avg Q1–Q3 EPS: (5.34+7.31+4.13)/3 = ₹5.59 | Annualised EPS: ₹22.36
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 421 | 438 | 395 | -3.88% | +6.58% |
| Operating Profit | 45 | 43 | 43 | +4.65% | +4.65% |
| Operating Margin % | 11% | 10% | 11% | +100 bps | flat |
| PAT | 12.1 | 7.8 | 20.2 | +54.87% | -40.1% |
| EPS (₹) | 4.13 | 2.84 | 7.31 | +45.42% | -43.5% |
The Plot Twist: Revenue fell 3.88% YoY, but EPS jumped 45.42%. How? Operating margins improved. Tax rate management helped. But mostly because Q2 FY26 was exceptional (₹7.31 EPS), so Q3 looks weak by comparison. The TTM EPS is ₹29.32 at a stock price of ₹816 = P/E of 27.8x. That’s not cheap for a company with 5.70% ROE and declining profit over 5 years. It’s the cement industry’s version of paying premium for mediocrity.
💬 A company with declining 5-year profits trades at 27.5x P/E while UltraTech (the industry giant) trades at 39.6x P/E. Does Mangalam deserve this valuation, or is the market just thirsty for anything that isn’t a pharma or IT stock? Your thoughts?
05 — Valuation Discussion — Fair Value Range
Is Mangalam Cement Worth More Than a Limestone Quarry?
