Despite seeing Mangalam Organics’ stock plummet from Rs 1,200 to Rs 200 in March, veteran investor Radhakishan Damani had retained his 2.2% stake since the June quarter of FY21, reflecting his unwavering confidence in the company. His persistence is now yielding results, with Mangalam Organics’ shares soaring to Rs 571.30 – an increase of over 185% from their March low – and closing at the upper circuit limit of 5% on Tuesday. This resurgence follows a prolonged downtrend that began in January 2022.
The stock surged on September 3 when the company’s promoter, Kamal Kumar Ramgopal Dujodwala, bought 3.2 lakh shares of Mangalam Organics, equivalent to a stake of about 4% in the company. These were bought for around Rs 17.82 crore. The promoter’s stake hike has strengthened investors’ confidence in the company’s potential improvement in the upcoming quarters. Despite the industry’s difficulties, The company had consistently improved its net profit in the previous financial year.
As the chemical sector begins to recover, Mangalam Organics is poised for an earnings rebound in the coming quarters, with the worst now considered to be over. This optimism has significantly enhanced positive sentiment towards the stock, leading to a remarkable resurgence over the past five months.
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