Mangalam Drugs And Organics Limited — Important, 16-01-2025: Updates

Crisil Ratings has upgraded the ratings of Mangalam Drugs and Organics Limited (MDOL). The long-term rating has improved to Crisil BBB-/Stable from Crisil BB+/Stable, while the short-term rating is upgraded to Crisil A3 from Crisil A4+. This reflects a strengthened business risk profile, particularly due to an increase in operating margin by 400 bps to approximately 10.87% in H1FY25, driven by higher volumes and a shift towards alternative, higher-margin raw materials. MDOL achieved revenues of around Rs 156 crore despite lower realizations. The company's strong financial profile is evidenced by a net worth exceeding Rs 100 crore and a gearing ratio of less than 1 as of March 31, 2024. Nonetheless, challenges such as significant working capital requirements and demand volatility remain watch areas. MDOL's outlook is considered stable, with expectations of maintaining its market position in the anti-malarial API segment amidst competitive dynamics.