Mangalam Organics has become increasingly difficult to track as it doesn’t do con-call and is highly illiquid (made worse by SEBI ASM frameworks) as well. If i recall, it had done large capex few quarters ago. There may be lag between commodity price increase and company earning due to multiple factors e.g. low priced finished goods inventory still in the channel esp. for B2C players, existing price contracts for B2B sales wherein price hike may take few qtrs to come into effect, presence of high cost RM inventory hence subdued margins, loss of market share etc. Most of these reasons may be theoretical as lack of con-calls means these would be our best guesses. Some buying by promoters and impact of capex done in 2022, may indicate positive outlook for the company esp. if camphor prices remain firm. Q1FY25 results too indicate some increase in inventory so their liquidation at increased prices too can give EPS a leg up.

Indostar Capital recently last week sold its HFC business to EQT for 1750crs, this liquidity will help them focus on their core strengths of vehicle financing and small business loans. Also due to which the stock was in news and the trading activity picked up on back of huge volumes and the stock hit a 52 week high. The entire HFC and NBFC space is buzzing off late.

Fundamentally, during these 3 years management changes took place and legacy Corporate, vehicle finance and SME book was cleaned up. Funds were infused couple of times by the promoter Brookfield and other marquee investors took a pie of the shareholding.

Technically Indostar has been in correction mode since Aug 2021 and has formed a rounding bottom structure in form of a cup and it might create a low handle to the cup. If the pattern plays out the next technical target could be around 415 levels.
Disclosure : Invested as a trading bet.(Trades done in last week, this not a stock recommendation, anyone contemplating investing needs to do their own due diligence).