SYNOPSIS:
Mangalam Medication’ shares fell after the corporate disclosed defaults on loans from Financial institution of Baroda and Financial institution of Maharashtra, citing diminished international disease-treatment funding and looking for mortgage restructuring amid weakened order flows.
Throughout Thursday’s buying and selling session, shares of an organization concerned within the manufacturing of Energetic Pharmaceutical Components and Intermediates tumbled almost 14 % to hit a brand new 52-week low at Rs. 47.21 on the BSE, after defaulting on loans from Financial institution of Baroda and Financial institution of Maharashtra.
With a market cap of Rs. 77 crores, shares of Mangalam Medication & Organics Restricted closed within the purple at Rs. 48.31 on Thursday, down by round 11.5 %, as in opposition to its earlier closing of Rs. 54.61 on BSE. The inventory has delivered unfavorable returns of round 54 % in a single 12 months, and has fallen by almost 31 % within the final one month.
What’s the Information
Over the previous two buying and selling periods, the shares of Mangalam Medication & Organics Restricted have declined by greater than 21 %, a fall seemingly triggered by the corporate’s disclosure concerning mortgage defaults with Financial institution of Baroda and Financial institution of Maharashtra.
In accordance with an trade submitting dated 18th November, Mangalam Medication & Organics Restricted reported that it had defaulted on its mortgage obligations to each banks for a interval exceeding 30 days. The corporate said that it had defaulted on a Rs. 4.15 crore mortgage from the Financial institution of Maharashtra, which was due for reimbursement earlier than seventeenth October, and a Rs. 3.5 crore mortgage from Financial institution of Baroda, which was scheduled for reimbursement earlier than twentieth October.
The corporate highlighted that its enterprise is essentially depending on funding supplied to formulators for the remedy of TB, HIV, malaria, and different illnesses by means of US Support. The discontinuation of this funding by the US authorities has considerably impacted operations. Presently, solely the World Fund continues to help such therapies, however with a diminished finances. As funding has slowed, order volumes for these therapies have additionally dropped sharply.
Mangalam Medication & Organics Restricted additional said that it has requested a mortgage restructuring from its lenders and plans to submit the proposed restructuring plan by mid-December 2025. The corporate added that it’s going to proceed to replace stakeholders on its discussions with the banks and is working towards clearing the overdue quantities on the earliest.
Financials & Extra
Mangalam Medication reported a decline in income from operations, experiencing a year-on-year lower of round 26 %, from Rs. 77 crores in Q1 FY25 to Rs. 57 crores in Q1 FY26. Throughout the identical interval, the corporate swung to a internet lack of Rs. 14 crore, in contrast with a internet revenue of Rs. 3 crore within the corresponding quarter final 12 months.
Mangalam Medication & Organics Restricted is engaged within the enterprise of producing and sale of Energetic Pharmaceutical Components (API) for numerous therapeutic segments, viz. anti-malaria, anti-retroviral, anti-hypertensive, amongst others.
The corporate is actively producing Pyronoridine Tetraphosphate, a brand new ingredient (API) utilized in antimalarial Therapies. In July 2022, the corporate acquired prequalification from the World Well being Organisation (WHO) for each Micronised and non-micronised types of Pyronaridine Phosphate.
Written by Shivani Singh
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