Ace investor Vijay Kedia's strategic investment in Mangalam Drugs & Organics has triggered strong investor interest, with the microcap pharmaceutical stock zooming over 10% in two days. The shares hit the upper circuit limit and remained locked throughout the trading session, demonstrating the market's positive response to the veteran investor's confidence in the struggling pharmaceutical company.

Investment Transaction Details

Kedia acquired the shares through his investment company, Kedia Securities Private Ltd, in a bulk deal transaction that has generated renewed market interest:

Remarkable Stock Performance

The investment announcement triggered exceptional market response, with the stock hitting the upper circuit limit at ₹26.28 on the NSE and remaining locked throughout the session. This represents a significant recovery from the stock's recent performance trajectory:

Kedia's Investment Strategy

The investment reflects Kedia's contrarian approach during challenging market conditions. The veteran investor has revealed that he maintains minimal cash reserves in his portfolio, preferring to remain fully invested while being highly selective about stock choices. His investment philosophy focuses on identifying potential value in distressed assets, even after mixed earnings results across the market.

Company Operations

Mangalam Drugs & Organics has been manufacturing Active Pharmaceutical Ingredients (APIs) and Intermediates since 1977, operating from its primary facility in VAPI, Gujarat. The company maintains multi-product manufacturing facilities across two locations and operates an in-house Research & Development laboratory recognized by the Department of Scientific & Industrial Research, Government of India. The company has established expertise in anti-Malaria APIs.

Market Context

While Mangalam Drugs hit the upper circuit, the broader market remained subdued with the benchmark Nifty 50 closing flat. This stark contrast highlights the specific investor interest generated by Kedia's investment decision, demonstrating how seasoned investor moves can create significant momentum in individual stocks despite overall market conditions.

Mangalam Organics , a leading manufacturer of pine chemicals and camphor-based products, has reported a robust 14.30% year-on-year revenue growth for the second quarter of fiscal year 2026. The company's revenue increased to Rs 158.10 crores in Q2 FY26, compared to Rs 138.32 crores in the same quarter of the previous year.

Improved Profitability

The company's performance in Q2 FY26 was marked by improved profitability, which management attributes to decreased input costs. This cost optimization has allowed Mangalam Organics to strengthen its bottom line despite ongoing market challenges.

Strategic B2B-to-B2C Transformation

A key highlight of Mangalam Organics' recent performance is its strategic shift from a primarily B2B pine chemicals manufacturer to include B2C operations. This transformation is centered around the company's CamPure brand of camphor-based home care products.

Expanding Distribution Network

As part of its B2C strategy, Mangalam Organics has significantly expanded its distribution network. The company now operates across 14 states, supported by a sales force of 190 personnel. This expanded reach is expected to drive further growth in the consumer segment.

Financial Performance Overview

All figures in Rs crores

While the company saw significant revenue growth, it's important to note the substantial decrease in EBITDA. However, the company managed to increase its Profit After Tax (PAT) by 50.94% year-over-year, indicating effective cost management and potentially favorable tax conditions.

Future Outlook

Mangalam Organics' strategic pivot towards B2C operations, coupled with its expanded distribution network, positions the company for potential growth in the consumer segment. The management's focus on the CamPure brand of camphor-based home care products may help diversify revenue streams and reduce dependence on B2B pine chemicals.

As the company continues its transformation, investors and industry observers will likely keep a close eye on how successfully Mangalam Organics balances its traditional B2B operations with its growing B2C segment, and whether this strategy translates into sustained profitability and market share gains in the coming quarters.