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

Vijay Kedia has bet on a microcap stock, Mangalam Drugs & Organics – a stock that has lagged the market, having fallen more than 70% in the past year. The veteran investor on Monday invested Rs. 1,37,794 equity shares in the company were bought through wholesale deals worth Rs 33.27 lakh.

Share Rs. 24.15 per equity share was bought, compared to Friday’s close of Rs. There was a 1.5% premium over the closing price of 23.78.

Kedia bought the shares through his investment company Kedia Securities Private Limited.

Mangalam Drugs shares are up 5% today or Rs. 1.18 to Rs. 24.96, which was also the stock’s high of the day.

Following the bulk deal, the shares traded at Rs. bounced off a 52-week low of 22.80.

Mangalam Drugs share Rs. 80% down from 52-week high of 124.89.

The market capitalization of the company is Rs. 39.51 crores.

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Mangalam Drugs & Organics started manufacturing Active Pharmaceutical Ingredients (APIs) and Intermediates in 1977 at Vapi-Gujarat. It has multi-product manufacturing facilities at two locations, and an in-house research and development laboratory accredited by the Government of Scientific and Indus, Delhi. The company is known for its anti-malarial API.

In the year-ago period, the company made Rs. 2.7 crore as against a net profit of Rs. 7.4 crore reported a consolidated net loss. Its total revenue also fell by 38% in the quarter under review to Rs. 50 crore as against Rs. 80 crore, according to Trendlyne data.

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The stock has been highly volatile with a 1-year beta hovering around 1.2, Trendline data shows.
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