Mangalam Global Enterprise: Rapid Growth, Stock Split, and Future Outlook in India’s Oilseed Industry
Business and Industry Overview:
Mangalam Global Enterprise Ltd (MGEL) is an Indian company that makes and sells oils, seeds, and farm products. It was started in 2010 and is part of the Mangalam Group, which has been in business since 1942. The company processes castor, soybean, mustard, and cotton seeds. It also works with wheat, rice, and cotton. MGEL has factories in India and supplies products to both Indian and international markets. It sells edible oils under the brand name LAGNAM. The company also provides agency services. Over the past three years, MGEL has grown in revenue and profit. It has a high promoter holding, which shows strong support from its owners. However, its profit margins have been low over the past five years. MGEL has international branches, helping it expand its business and reach more customers.
India is the fourth largest oilseeds producer in the world. It has 20.8% of the total area under cultivation globally, accounting for 10% of global production. The country produces Groundnut, Soybean, Sunflower, Sesamum, Niger seed, Mustard, And Safflower oilseeds.
Incorporated in 2010, Mangalam Global Enterprise Limited is set up by the Ahmedabad based Mangalam group. It is mainly engaged in the business of manufacturing refined castor oil, first stage grade (F.S.G.), castor de-oil cake, and high-protein castor De-Oiled Cake for domestic and international markets.
India’s oilseed industry is growing. Most farmers depend on rainfall, which affects production. To improve this, the government is helping with better technology and support. India produces large amounts of oilseeds like mustard, groundnut, and sesame. Major producing states include Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra. India also exports oilseeds to many countries, including the USA and China. The government is working to increase production and reduce imports. It is also helping farmers with better seeds and farming methods. A special council is helping improve quality and boost exports.
Mangalam Global Enterprise Ltd. (MGEL) has increased its market share from 0.54% to 1.36% in five years. Market share shows how much of the total industry sales a company earns. MGEL’s revenue has grown at 36.6% per year, higher than the industry average of 8.56%. Its net income has also grown at 54.03% per year, much higher than the industry average of 0.7%. In September 2024, MGEL’s promoters held 72.01% of the company. You can check MGEL’s market share on websites like Tickertape, Finology Ticker, and Value Research.
Latest Stock News:
The company on 13 January 2025 had Approved Sub-division / Split of existing 1 (One) Equity Share of face value of ₹2/- (Rupees Two only) each fully paid up, into 2 Equity Share of face value of ₹1 (Rupees One only) each fully paid up, subject to the approval of the shareholders of the Company, through Postal Ballot and regulatory/statutory approvals as may be required. The record date of Tuesday, March 04, 2025 had been set by Mangalam Global Enterprise Ltd to determine the eligibility of members for the purpose of Sub Division/split of every 1 (One) equity Share of face value ot Rs.2/- each into 2 (Two) Equity Shares of Rs. 1/- each. This needs approval from shareholders and regulators. The stock price has increased a lot in recent months. It went up by 27% in one month and 54% in one year. Even after this rise, the stock price is still lower than many other companies in India.
The company’s earnings have grown very fast. Last year, its earnings increased by 74%. Over the last three years, earnings have grown by more than 1,800%. This is much higher than the market’s expected growth of 25% for the next year. Normally, such strong growth leads to a higher stock price. But some investors think this fast growth may not continue.
Even though the stock price is rising, some investors are selling at lower prices. This could mean they are unsure about future earnings. Before making an investment, it is important to check all risks and understand the company’s future potential.
Potentials:
Mangalam Global Enterprise Ltd. has been growing fast. Its earnings increased by 74% last year and over 1,800% in three years. This shows the company is expanding. It operates in edible oils, agriculture, and exports, which are always in demand. The company also decided to split its shares, making them more affordable for investors. Even after a recent price jump, the stock is still cheaper than many others in the market. Some investors think future growth may slow down, so it is important to check both risks and opportunities before investing.
Analyst Insights:
- Market capitalisation: ₹ 534 Cr.
- Current Price: ₹ 16.1
- 52-Week High/Low: ₹ 17.0 / 8.64
- Dividend Yield: 0.06 %
- P/E Ratio: 18.2
- Return on Capital Employed (ROCE): 14.1 %
- Return on Equity (ROE): 14.7 %
The company has shown strong growth in both profit and sales over the years. It has also reduced its debt, which makes its financial position better. The stock price is near its highest level in the past year, showing strong investor interest. The company is expected to perform well in the coming quarters. However, there are some risks. It has liabilities that could affect its financial health in the future. Its return on equity is low, which means it is not using its funds very efficiently. The stock is also trading at a higher price compared to its actual value. Investors who already own the stock can hold it. New investors may wait for a better price before buying.