Mangalam Drugs Bulk Deal: Vijay Kedia's new bet is a microcap that has plunged over 70% in one year

Vijay Kedia has placed his bet on a microcap stock, Mangalam Drugs And Organics - a stock that has lagged the market, falling over 70% in the past year. The ace investor on Monday picked 1,37,794 equity shares in the company via a bulk deal valued at Rs 33.27 lakh.

The shares were bought for Rs 24.15 per equity share, which was a 1.5% premium over the Friday closing price of Rs 23.78 on the NSE.

Kedia purchased the shares via his investment company, Kedia Securities Private Ltd.


Mangalam Drugs shares today rallied 5% or by Rs 1.18 to settle at Rs 24.96, which was also the stock's day high.

The stock shot up from its 52-week low of Rs 22.80 following the bulk deal.

Shares of Mangalam Drugs are down 80% from their 52-week high of Rs 124.89.

The company's market capitalisation is at Rs 39.51 crore.

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Mangalam Drugs & Organics commenced its manufacturing of Active Pharmaceutical Ingredients (APIs) and Intermediates at VAPI – Gujarat in 1977. It has a multi-product manufacturing facility on two locations, and an in-house Research & Development laboratory recognised by the Department of Scientific & Industrial Research, Delhi, Government of India (DSIR). The company is known for its anti-Malaria APIs.

The company reported a consolidated net loss of Rs 7.4 crore compared to a net profit of Rs 2.7 crore in the year-ago period. Its total revenue also fell 38% to Rs 50 crore in the quarter under review versus Rs 80 crore in the corresponding quarter of the last financial year, according to Trendlyne data.

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The stock has been very volatile, with a 1-year beta hovering around 1.2, Trendlyne data revealed.
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