Mangalam Organics witnessed significant institutional selling on Wednesday as multiple investors executed bulk deals worth over ₹1.60 crore. The microcap pharmaceutical stock saw prominent investor Vijay Kedia's investment firm among the key sellers, despite the stock posting gains during the trading session.

Major Bulk Deal Transactions

The bulk deal activity involved several institutional investors exiting their positions in the company:

Kedia Securities Private Limited, the investment firm of well-known investor Vijay Kedia, sold approximately 1.38 lakh shares worth ₹48.35 lakh, representing the largest single transaction among the bulk deals.

Stock Performance and Technical Indicators

Despite the institutional selling pressure, shares of Mangalam Drugs surged 5.00% during Wednesday's trading session to settle at ₹35.18 on the NSE. The stock has experienced significant volatility over different time periods, with contrasting performance trends.

The company's shares have declined 69.00% over the past 12 months, reflecting substantial erosion in market value. However, recent weeks have shown a recovery pattern, with the stock jumping nearly 40.00% over the past month, indicating renewed investor interest.

Technical Analysis Overview

The current market positioning shows mixed technical signals:

The stock is trading below both its 50-day and 200-day simple moving averages, suggesting the recent rally has not yet overcome longer-term resistance levels. The Money Flow Index around 90 indicates the counter is in a strongly overbought zone, as readings above 70 are typically considered overbought.

Financial Performance Update

The company's recent financial results reflect challenging operating conditions. For the quarter ended September 30, 2025, Mangalam Drugs reported a consolidated net loss of ₹7.40 crore, marking a significant deterioration from the profit after tax of ₹2.70 crore recorded in the corresponding quarter of the previous financial year.

Revenue performance also showed weakness, with total revenue declining to ₹50.00 crore in the quarter under review, representing a 38.00% decrease from ₹80.00 crore posted in the same quarter of the last financial year.

Company Background

Mangalam Drugs is a Gujarat-based pharmaceutical company that began manufacturing Active Pharmaceutical Ingredients and Intermediates in 1977. The company operates multi-product manufacturing facilities across two locations and maintains an in-house Research & Development laboratory to support its operations in the pharmaceutical sector.

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.