Vijay Kedia Takes Fresh Stake In Beaten Down Mangalam Drugs Stock | Image With AajTak
Vijay Kedia has again come into focus in the stock market after building a new position in a deeply corrected penny stock.
The well known investor is popular for his SMILE philosophy which stands for Small in size, Medium in experience, Large in aspiration and Extra large market potential. His fresh bet is on Mangalam Drugs and Organics Ltd, a small pharma company that has been under price pressure for many months.
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The purchase took place on December 29, 2025 through Kedia Securities. The firm bought 1,37,794 shares at an average price of ₹24.15 each.
The total deal value stood close to ₹33 lakh. The stock is currently trading near ₹24 to ₹26. The overall market capitalization of the company remains near ₹40 to ₹45 crore. This shows that the company is still very small in size compared to most listed firms.
Mangalam Drugs works in the pharma chemicals space. It makes active pharmaceutical ingredients or APIs.
The company has strong exposure to anti malarial drug intermediates. These products are supplied to both domestic and global buyers. However, the business has been facing financial pressure in recent quarters. Revenue has declined. Losses have increased. Debt also remains present on the balance sheet. Despite that, Kedia has taken a position at what many people consider a distressed valuation.
The market reacted quickly after the bulk deal appeared in the exchange data. Trading volumes in Mangalam Drugs picked up. Soon after that the stock started hitting 5 percent upper circuits on multiple days. The price moved up around 10 to 15 percent over the next few sessions.
This type of move is sometimes referred to as the Kedia effect. When he buys into smaller companies, investor interest often increases.
As trading moved into early January 2026, the stock continued to show sharp movement on both sides. Volatility was high. Traders remained active in the counter. But the broader trend of the business still depends on future financial improvement. Without strong earnings recovery, long term stability may remain uncertain.
Kedia generally follows a diversified portfolio style. He invests across small and midcap companies in manufacturing, pharma, exports and related sectors. His holdings usually range between 16 and 20 companies. Some of his past investments have delivered very strong gains. Others have corrected sharply. This reflects the risky nature of early stage and contrarian investing.
Mangalam Drugs has been facing a difficult operating environment. In the recent quarter, revenue fell sharply. Q2 revenue declined by around 38 percent on a quarter on quarter basis.
The company also reported a net loss of nearly ₹7.35 crore in the same period. Debt remains meaningful with a debt to equity ratio close to 0.74 times. Another concern for investors has been promoter pledge. Nearly 34 percent of promoter holding is currently pledged.
The share price performance also reflects these issues. The stock has already fallen more than 80 percent from its earlier highs. That decline has destroyed large value for shareholders who entered at higher levels.
Still, the company has some operational strengths. Mangalam Drugs has been in the pharma ingredient space for many decades. It holds WHO GMP approvals for its facilities. The company also supplies anti malarial APIs to global customers. Recently, the firm received a repeat export order worth around ₹15 crore. This order is meaningful in size when compared with the company’s small market capitalization. Supporters believe that such orders may help in stabilizing operations over time.
One more point that attracts contrarian investors is valuation. At one stage, the stock was trading close to a price to book ratio of about 0.28. That is considered very low in market terms. If the business manages to improve, re rating can take place. However, that depends fully on execution.
Investor opinion on social platforms remains divided. One group believes that this move is a classic contrarian signal. They feel that Kedia may have identified hidden value in a company that is going through temporary stress. They highlight his past track record of entering companies at difficult times.
Another group remains cautious. They point out that revenue pressure, losses and debt are still present. They remind that this remains a high risk stock and not a stable compounder.
There are also comments noting that stocks linked to well known investors often move sharply at first. But the gains only sustain if the business later improves. Retail traders are showing active interest in the discussion around smallcap contrarian themes again.
This data highlights the stressed but active nature of the business.
Mangalam Drugs clearly remains a high risk investment idea. Losses are present. Debt remains on the balance sheet. Promoter pledge is high. Any further weakness can raise pressure from lenders. The stock also shows heavy volatility. Price swings can be sudden and sharp. This is not suitable for conservative investors.
However, contrarian investors often look for value during the worst sentiment phase. The belief is that turnarounds begin when the outlook appears weakest. Kedia’s move seems to reflect this approach. His SMILE philosophy focuses on small companies with large long term potential. Not every bet works. But when it does, returns can be strong.
With the entry of Vijay Kedia, Mangalam Drugs has again become a speculative turnaround story in the market. The positive case is that the company improves execution, secures more export orders and slowly returns to profitability. If that happens, valuation can re rate because the stock is starting from a low base.
The risk case is that financial stress continues, demand stays weak and losses remain. In that situation, the stock may remain subdued for a long period. Investors need to fully understand both sides.
For most retail investors, this stock may be better suited for observation rather than aggressive buying. It does provide an example of how experienced investors search for value in distressed names. But careful study of balance sheets, debt levels and cash flow remains essential before acting in such cases.
Each investor must also consider risk tolerance, time horizon and financial goals before looking at smallcap pharma stocks. The market rewards patience and research. That applies strongly here as well.
Tags: Vijay Kedia, Mangalam Drugs, Penny Stock, Bulk Deal, Indian Stock Market, Pharma Sector
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