Mangalam Organics Ltd

Mangalam Organics Ltd maintains a debt-to-equity ratio of 0.62, indicating a moderate level of leverage relative to its equity base. The company's liquidity position is characterized as medium risk, with a current ratio of 1.24, suggesting it has sufficient short-term assets to cover its short-term liabilities, but with limited excess. The company's cash and equivalents amount to INR 5.42 million, which is significantly lower than its long-term debt of INR 1.73 billion, resulting in a negative net cash position.

In terms of profitability, the company's return on equity (ROE) is 0.92%, and its return on assets (ROA) is 0.53%, both of which are below the typical thresholds for strong performance in the Diversified Chemicals industry. The operating margin, calculated as operating income of INR 51.23 million on revenue of INR 1.05 billion, is 4.88%, which is relatively low compared to industry benchmarks. The net profit margin is 0.24%, indicating that the company is generating minimal net profit relative to its revenue.

The company's revenue is primarily derived from its operations in the Diversified Chemicals industry, with no specific geographic breakdown provided in the available data. Given the lack of segment or geographic detail, it is not possible to assess the degree of revenue concentration or diversification.

Looking at the company's growth trajectory, the most recent actual revenue of INR 2.39 billion suggests a significant increase from the previously reported INR 1.05 billion. However, without a clear time frame for this growth, it is difficult to determine the sustainability or pace of this increase. The company's capital expenditure of INR -399.74 million indicates a reduction in investment in long-term assets, which may signal a strategic shift or financial constraint.

The risk assessment for Mangalam Organics Ltd highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after accounting for total debt, which could pose challenges in meeting long-term obligations. The dilution risk is considered low, with no significant changes in shares outstanding between basic and diluted figures. The company has not disclosed any recent events or filings that would indicate significant operational or financial changes.

Net income surged 116.2% year-over-year, demonstrating a significant recovery in profitability compared to the prior fiscal period.

Operating income jumped 196.8% year-over-year, indicating a substantial improvement in core operational efficiency and earnings power.

Free cash flow improved by 69.4% year-over-year, signaling better cash generation capabilities despite historical volatility.

Cash conversion stands at 28.47, ranking as best-in-class within the diversified chemicals cohort of 57 peers.

Long-term debt decreased to 1.73 billion INR in FY-1, reflecting a reduction in leverage from previous periods.

The company faces high credit risk, posing significant potential challenges for financial stability and borrowing costs.

Return on equity of 0.92% is significantly below the 3.68% median, suggesting inefficient use of shareholder capital.

Revenue INR 1.58B, +14,3% YoY; Operating income −231,1% YoY.

• ▍Revenue INR 1.58B, +14,3% YoY
• ▍Operating income −231,1% YoY
• ▍Net income +49,2% YoY
• ▍Net margin 2.0%

Revenue INR 5.30B, +7,4% YoY; Operating income +100,4% YoY.

• ▍Revenue INR 5.30B, +7,4% YoY
• ▍Operating income +100,4% YoY
• ▍Net income +185,9% YoY
• ▍Free cash flow −113,6% YoY
• ▍Net margin 2.4%