PROBLEM IN MANGALAM DRUG

MANGALAM DRUG INVENTORY % OF SALES

SALES
2015: 220.58 Cr
2016: 295.02 Cr
2017: 302.89Cr
2018: 279.95 Cr

INVENTORY
2015: 57.34 Cr
2016: 47.34 cr
2017: 37.25 Cr
2018: 67.95cr

Inventory percent to sales
2015: 25.99%
2016: 16.04 %
2017: 12.29%
2018: 24.37%

RECEIVABLES
2015: 44.25 cr
2016: 30.14 cr
2017: 39.75 cr
2018: 45.37 cr

RECEIVABLES TO SALES

2015: 20.06 %
2016: 10.21%
2017: 13.12%
2018: 16.20%

RECEIVABLES PLUS INVENTORY TO SALES

2015: 46.05%
2016: 26.25%
2017: 25.41%
2018: 40.57%

CONCLUSION :
MANGALAM DRUG lowest PRICE in 2015 was 20,but in 2015 quarters some signs of improvement market observed then after it was re rated in 2015 and 2016.
But mangalam management missed out
When whole pharma sector was under pressure in 2016 and 2017
It expanded capacity which resulted inventory pile up Along with increasing debt and pledge,which resulted stock price going towards same level as was in 2015.

Author: Atul Singh Stock Market Analyst

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