A small-cap stock engaged in the production and sale of nitrogenous and phosphatic fertilizers, including urea, diammonium phosphate (DAP), and ammonium bicarbonate is gaining investor attention after ace investor Dolly Khanna increased her stake for the quarter, now holding 2.18 percent in the company.
Price action
With a market capitalization of Rs. 2,423.63 crores on Friday, the shares of Mangalore Chemicals & Fertilizers Limited jumped upto 2.28, making a high of Rs. 216.80 per share compared to its previous closing price of Rs. 211.95 per share.
What Happened
Mangalore Chemicals & Fertilizers Limited, specializing in the production and sale of nitrogenous and phosphatic fertilizers, including urea, diammonium phosphate (DAP), and ammonium bicarbonate, has drawn renewed investor interest following Ace Investor Dolly Khanna increasing stake in the company.
Ace investor Dolly Khanna has steadily increased her stake in the company over the past quarters. During this fourth quarter, she raised her holding by 0.43 percent, taking her total shareholding to 2.18 percent as of March 2025.
This follows her earlier increase in the third quarter, where she boosted her stake from 1.59 percent to 1.75 percent. Her consistent accumulation suggests a strong conviction in the company’s long-term growth prospects.
About the Company
Mangalore Chemicals & Fertilizers Ltd (MCF) is a leading manufacturer of fertilizers based in India. The company produces a wide range of products, including urea, single super phosphate (SSP), and various other fertilizers used in agriculture.
Financials
The company’s revenue rose by 49.6 percent from Rs. 651.22 crore to Rs. 974.81 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 32.98 crore to Rs. 57.39 crore during the same period.
Shareholding Pattern
As of the December 2024 shareholding pattern, promoters of Mangalore Chemicals & Fertilizers Limited hold a 60.63 percent stake in the company. Foreign Institutional Investors (FIIs) own 2.12 percent, while Domestic Institutional Investors (DIIs) and retail investors hold 5.74 percent and 31.51 percent, respectively. Notably, as of Q4, ace inventor Dolly Khanna owns 2.18 percent of the company.
Accounting Ratios
The company has a Return on Capital Employed (ROCE) of 14.64 percent and a Return on Equity (ROE) of 10.9 percent. Its Price-to-Earnings (P/E) ratio stands at 16.86, lower than the industry average of 24.63. Furthermore, the company maintains a debt-to-equity ratio of 0.79 and an Earnings Per Share (EPS) of Rs. 1.18.
Written by Sridhar J
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