Mangalam Seeds Limited

Basic Materials — Agricultural Inputs · NSE

₹135.24+₹0.24 (+0.18%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Reasonable but unspectacular business quality, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mangalam Seeds Limited produces, processes, and markets hybrid and GM seeds in India. It offers grain, oil, spicy, pulse, fiber, fodder, kitchen garden vegetable, and hybrid vegetable seeds. The company markets its products through distributors, dealers, and retailers.

IndustryAgricultural Inputs

SectorBasic Materials

Employees89

Annual revenue₹112 Cr

How does it make money?

Turns over ₹112 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 89 employees supports ₹1.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.26 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.5% 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.

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +72% while net margin moved -57% 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+72%

Margin effect-57%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.3% is weak
✗ ROE has fallen by 10.2 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

60/ 100

Fair

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

17.8x

Sector Median

28.7x

median of 4 sector peers

🟢Against its sector it trades 38% below the peer median of 28.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

28.7x median of 4 peers · -38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.3x

PEG

10.50

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 141% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.6% to 9.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.7% to 12.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 181% over 3 years, from ₹18 Cr to ₹49 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.4 points, from 24.6% to 14.2%.
🔴Inventory building faster than salesFinancial
Inventory up 216% against revenue up 72% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 25% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 38% 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?

Margins are being competed away
EBITDA margin has fallen from 24.6% to 14.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 19.6% to 9.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 15% a year✓ 19.7% CAGR
Latest reported year was 25.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹148 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.62x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.58

Profitable

Profitable on a per-share basis

ROE

9.3%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

25.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1.7%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.3%

Average

Average margins

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.45

High swing

Swings more than the market in both directions

52W Range Position

32%

Mid-range

Technical Snapshot

RSI (14)

49.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹65 Cr	₹112 Cr	₹103 Cr	₹112 Cr	+19.7%
EBITDA	₹16 Cr	₹20 Cr	₹18 Cr	₹16 Cr	-0.4%
EBITDA Margin	24.6%	18.0%	17.5%	14.2%	—
PAT (Net Profit)	₹11 Cr	₹13 Cr	₹10 Cr	₹8 Cr	-9.3%
EPS	₹10.08	₹12.01	₹9.37	₹7.52	-9.3%
ROE	19.6%	18.9%	12.9%	9.3%	—
ROCE	23.7%	20.0%	15.7%	12.5%	—
Total Debt	₹18 Cr	₹57 Cr	₹65 Cr	₹49 Cr	+41.2%
Free Cash Flow	₹3 Cr	-₹32 Cr	-₹10 Cr	₹7 Cr	+34.0%

🟢 Revenue has grown at 19.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.4% a year).

🔴 EBITDA Margin has fallen from 24.6% to 14.2% over 3 years (-10.4 pts).

🔴 PAT (Net Profit) has shrunk at 9.3% a year over 3 years.

🔴 EPS has shrunk at 9.3% a year over 3 years.

🔴 ROE has fallen from 19.6% to 9.3% over 3 years (-10.2 pts).

🔴 ROCE has fallen from 23.7% to 12.5% over 3 years (-11.2 pts).

🔴 Total Debt has grown at 41.2% a year over 3 years.

🟢 Free Cash Flow has grown at 34.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹164 Cr

Total Liabilities

₹74 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.9%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 mixed5 general

Mangalam Seeds Share Price gains 19.70% amid sector context

Univest, 07 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Mangalam Seeds Ltd

Equitypandit, 19 Aug

Mangalam Seeds Ltd (NSE: MSL) Declines 7.28% as Stock Draws Market Attention

Kalkine India, 01 Oct

Mangalam Seeds Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Mangalam Seeds retires from Kena Print Pack stake for ₹1.5 crore

scanx.trade, 27 Aug

Mangalam Seeds Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Valuation

WeakProfitability · Risk

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑