Mangalam Cement Limited

Basic Materials — Building Materials · NSE

₹974.00+₹14.80 (+1.54%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Mangalam Cement Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mangalam Cement Limited manufactures and sells cement and clinker products in India. The company offers Portland Pozzolana, 43 grade, 53 grade, and fly ash-based PPC cement under the Mangalam ProMaxX and Birla Uttam Cement brands, as well as medium density fibre boards.

IndustryBuilding Materials

SectorBasic Materials

Employees992

Annual revenue₹1,757 Cr

How does it make money?

Turns over ₹1,757 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 992 employees supports ₹1.77 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin13.0%

Net margin7.3%

Revenue / employee₹1.77 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

GRASIM INDUSTRIES LTDP/E 34.8x · ROE 5.5%

AMBUJA CEMENTS LTDP/E 20.4x · ROE 7.4%

SHREE CEMENT LIMITEDP/E 49.7x · ROE 7.0%

What is its competitive advantage?Little sign of one

Returns on capital of 9.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE9.3%

ROE13.2%

Peer median ROE7.4%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 2.0% and earnings to grow about 52.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+2.0%

Est. earnings growth+52.5%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved +668% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-2%

Margin effect+668%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.47 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

73/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

23.3x

3Y Median

47.0x

40 monthly readings · mean 60.8x · range 20.8x–155.5x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 50% below its 3y median of 47.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 36% below the peer median of 36.2x.

vs. its own history

Cheap

47.0x median over 40 months · -50%

vs. sector peers

Cheap

36.2x median of 4 peers · -36%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

23.3x

P/B

2.74x

EV/EBITDA

15.6x

PEG

0.24

Dividend Yield

0.15%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 8.2% to 13.0% over 3 years.
Return on equity is rising
ROE has improved from 2.3% to 13.2%.
Return on capital is rising
ROCE has improved from 5.6% to 9.3%.
Valuation below its historical average
At 23.3x the stock trades 50% below its own median of 47.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 43% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 24% against revenue growth of -2% — stock may not be moving.
Short-term liquidity is tight
Current ratio of 0.72 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 43% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹254 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 24% against revenue up -2% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.72 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.2% to 13.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 50% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 13.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹254 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✓ 9.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 8 neutral · 2 weak

Market Cap

₹2,678 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹41.73

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

9.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.91x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.8%

Modest

Modest growth

Profit Growth (YoY)

-44.0%

Falling

Profits are shrinking

Dividend Yield

0.15%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹254 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹974

P/E (Forward)

16.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.9%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

0.72

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

991.0 / 996.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,792 Cr	₹1,725 Cr	₹1,680 Cr	₹1,757 Cr	-0.7%
EBITDA	₹148 Cr	₹212 Cr	₹185 Cr	₹228 Cr	+15.5%
EBITDA Margin	8.2%	12.3%	11.0%	13.0%	—
PAT (Net Profit)	₹17 Cr	₹60 Cr	₹45 Cr	₹129 Cr	+96.0%
EPS	₹6.23	₹21.72	₹16.39	₹46.9	+96.0%
ROE	2.3%	7.4%	5.3%	13.2%	—
ROCE	5.6%	11.9%	9.0%	9.3%	—
Total Debt	₹621 Cr	₹607 Cr	₹627 Cr	₹888 Cr	+12.7%
Free Cash Flow	₹11 Cr	₹84 Cr	₹62 Cr	-₹254 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.7% a year).

🟢 EBITDA has grown at 15.5% a year over 3 years.

🟢 EBITDA Margin has risen from 8.2% to 13.0% over 3 years (+4.7 pts).

🟢 PAT (Net Profit) has grown at 96.0% a year over 3 years.

🟢 EPS has grown at 96.0% a year over 3 years.

🟢 ROE has risen from 2.3% to 13.2% over 3 years (+10.9 pts).

🟢 ROCE has risen from 5.6% to 9.3% over 3 years (+3.7 pts).

🔴 Total Debt has grown at 12.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹254 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,425 Cr

Total Liabilities

₹1,448 Cr

Total Debt

₹888 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹94 Cr

Capex

-₹348 Cr

Shareholding (proxy)

Institutional Holding

11.1%

Insider Holding

47.1%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

14 Aug 2026

Analyst Consensus

Recommendations

0 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹870

-10.7% vs CMP

Target Range

₹870 – ₹870

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 positive1 mixed4 general

Mangalam Cement (MANGLMCEM) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Mangalam Cement AGM approves ₹3,000 crore borrowing limit hike

scanx.trade, 21 Aug

Volume Gainers, August 20, 2026 at 3:30 PM IST

HDFC Sky, 20 Aug

Mangalam Cement (BSE:502157) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Mangalam Cement Faces Rs 2.7 Crore GST Demand; Company Plans Appeal

Whalesbook, 08 Oct

Mangalam Cement Q4 Net Profit Surges 285% to ₹65.2 Cr Despite Revenue Dip

Sahi, 16 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🔴Financial HealthStretched8.7/20

🟡GrowthModest10.5/20

🟡ProfitabilityModerate9.6/15

🟢ValuationAttractive10.7/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 11%13.0%
✗Debt / EBITDA falls below 3x3.9x
✗Free cash flow remains positive-₹254 Cr
✓Interest cover stays above 3x3.4x
✓ROCE stays above 8%9.3%