The shares of Mangalam Seeds have been on a roll. They hit the 5% upper circuit and were quoting at ₹ 220.05 apiece at 11:46 AM on Tuesday and 3,692 shares changed hands on the bourses. The company’s shares have been on a gaining streak since January 12, 2023.
The shares of Mangalam Seeds a small-cap company zoomed 146.97% in 1 month to give multibagger returns to its shareholders. They were available at ₹ 89.10 apiece a month ago. If investors would have invested ₹ 1 lakh in the company one month ago, the value of their holdings would have been ₹ 2.46 lakhs today!
When the exchanges asked for clarification regarding the significant movement in its price, the company said, “We hereby confirm that the Company is making prompt disclosures of all events, information, announcements, updates etc. that have a bearing on the operation/performance of the Company which include all price sensitive information etc. within the stipulated timelines.”
It added that it does not have any information that may have a bearing on the price/volume behaviour of its shares.
The company reported an increase of 78% in its net income at ₹ 12.43 crores in the second quarter of FY 23 (Q2FY23), against ₹ 6.96 crores in the corresponding period last year. Further, its net profit increased by 126% to ₹ 1.61 crores in Q2FY23, against ₹ 0.71 crores recorded in the same quarter last year.
Mangalam Seeds Ltd. is a small-cap company that operates in the fast-moving consumer goods (FMCG) industry. It is engaged in the production, processing and marketing of Hybrid and GM seeds having a range of field crops and vegetable crops.
The company has a market capitalization of ₹ 230 crores and is a small-cap company. It has a return on equity of 12.08% and an ideal debt-to-equity ratio of 0.40. Its shares were trading at a price-to-earnings ratio of 36.86 which is significantly higher than the industry average of 19.30, indicating that the stock might be overvalued.
Written by Simran Bafna
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