Mangalam Drugs and Organics Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Mangalam Drugs & Organics has not reported any payouts.
• Unable to evaluate Mangalam Drugs & Organics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Mangalam Drugs & Organics's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Mangalam Drugs & Organics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Mangalam Drugs & Organics has been profitable on average in the past, therefore cash runway is not a concern.
• Mangalam Drugs & Organics has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (30.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.7x debt.
• Mangalam Drugs & Organics's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (280.5% vs 65.1% today).

Cons

• Mangalam Drugs & Organics is making a loss, therefore interest payments are not well covered by earnings.
• Mangalam Drugs & Organics's level of debt (65.1%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Govardhan's remuneration is lower than average for companies of similar size in India.
• Govardhan's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Mangalam Drugs & Organics board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Mangalam Drugs & Organics is not covered by any analysts.
• Mangalam Drugs & Organics has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Mangalam Drugs & Organics's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Mangalam Drugs & Organics does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• Mangalam Drugs & Organics used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• It is difficult to establish if Mangalam Drugs & Organics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Mangalam Drugs & Organics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Mangalam Drugs & Organics's 1-year growth to the IN Pharmaceuticals industry average as it is not currently profitable.

value

Pros

• Mangalam Drugs & Organics is good value based on assets compared to the IN Pharmaceuticals industry average.
• MANGALAM outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
• MANGALAM outperformed the Market in India which returned -14.5% over the past year.

Cons

• Mangalam Drugs & Organics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Mangalam Drugs & Organics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Mangalam Drugs & Organics is loss making, we can't compare its value to the IN Pharmaceuticals industry average.
• Mangalam Drugs & Organics is loss making, we can't compare the value of its earnings to the India market.
• NSEI:MANGALAM is down -16.3% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• NSEI:MANGALAM is down -16.3% underperforming the market in India which returned 8% over the past month.