The fortunes of mangalam and kanchi karpooram were symmetrical historically;as might be expected from companies selling pure commodities.The differences being mangalam’s foray into branded retail,tie up with DRT,and better operational efficiency.
But I dont know what to make of the divergence in their pe ratios over the last month.Why does mangalam deserve so much premium?Afterall they’re commodity companies.If someone wants to play the camphor cycle I feel they’re better off choosing kanchi karpooram at this point due to the relative undervaluation.
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The Mangalam Stock has been rising steadily for the last month or so, having risen from a low of about 130 to current levels of around 300 on reasonable volumes & more importantly with very high delivery volumes of around 90%. The nature of buying is not indicative of promoter buying & it would be interesting to see if there are any new names in the share holders list when it comes out for the quarter ending June 2020.
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Dear Rajeevji, is it possible to obtain the share holders list legitimately from the Company before the end of next quarter?
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I had applied to the Co. for the latest list of shareholders, but the Co. has responded by asking me to visit their office & take inspection of the list & ask for a copy if so required. They further inform me that as their office is shut due to Covid-19, I should approach the Co. later.
Almost all the companies send soft copies of shareholder list. Clearly the mgt. is reluctant to share the list at this moment & disclose the identity of the new entrant.
I guess we will have to wait for the June 2020 shareholding notification to the stock exchange to know better.
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Gross Deliverables in the Mangalam stock from 1st April 2020 till date.
| Date | Delivery Quantity | Delivery Value Rs. | Day’s Volume | Day’s Turnover Rs. | Delivery % |
|---|---|---|---|---|---|
| 01/04/2020 | 20,070 | 3,925,692.00 | 23,942 | 4,633,387.00 | 83.83 |
| 03/04/2020 | 11,784 | 2,341,481.00 | 13,864 | 2,756,781.00 | 85.00 |
| 07/04/2020 | 14,204 | 0.00 | 16,093 | 3,332,735.00 | 88.26 |
| 08/04/2020 | 14,659 | 3,190,532.00 | 17,776 | 3,766,712.00 | 82.47 |
| 09/04/2020 | 11,141 | 0.00 | 11,486 | 2,620,126.00 | 97.00 |
| 13/04/2020 | 7,740 | 1,856,826.00 | 10,115 | 2,369,647.00 | 76.52 |
| 15/04/2020 | 7,167 | 1,805,009.00 | 7,217 | 1,817,076.00 | 99.31 |
| 16/04/2020 | 18,572 | 0.00 | 24,774 | 6,444,007.00 | 74.97 |
| 17/04/2020 | 10,558 | 0.00 | 11,573 | 2,901,699.00 | 91.23 |
| 20/04/2020 | 13,316 | 3,145,905.00 | 15,615 | 3,748,558.00 | 85.28 |
| 21/04/2020 | 23,697 | 5,393,438.00 | 24,863 | 5,619,263.00 | 95.31 |
| 22/04/2020 | 13,438 | 0.00 | 14,208 | 3,326,313.00 | 94.58 |
| 23/04/2020 | 10,257 | 2,564,763.00 | 11,564 | 2,840,166.00 | 88.70 |
| 24/04/2020 | 12,968 | 0.00 | 15,885 | 4,085,871.00 | 81.64 |
| 27/04/2020 | 8,396 | 2,237,954.00 | 9,899 | 2,573,486.00 | 84.82 |
| 28/04/2020 | 11,304 | 3,163,425.00 | 12,310 | 3,441,066.00 | 91.83 |
| 29/04/2020 | 9,565 | 2,810,197.00 | 9,880 | 2,892,650.00 | 96.81 |
| 30/04/2020 | 29,696 | 9,112,218.00 | 35,643 | 10,935,017.00 | 83.32 |
| 04/05/2020 | 21,773 | 6,621,170.00 | 25,098 | 7,604,468.00 | 86.75 |
| 05/05/2020 | 8,343 | 2,504,986.00 | 8,926 | 2,727,760.00 | 93.47 |
| 06/05/2020 | 7,075 | 2,084,295.00 | 7,953 | 2,339,345.00 | 88.96 |
| 07/05/2020 | 9,976 | 3,080,589.00 | 10,510 | 3,171,409.00 | 94.92 |
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IMO camphor could play a major role in near future in india as a medicines point of view. Camphor have many benefits that everybody knows but time will tell
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Medical camphor is different from the synthetic camphor.
Yes definitely and mangalam organics working on it already. 
interesting development… Is camphor 1m is approved by govt?
Hi Akash,
Any idea as to how much camphor is being consumed in the making of these homeopathy drugs? Currently all of India is looking to consume Camphor 1m.
Tried to fetch this but not succeed. Review of the drug is very encouraging.
I’m not a doctor but this is my understanding:
- Homeopathy practitioners believe that the potency of a homeopathic medicine increases with dilution.
A homeopathic medicine of 1C potency is made by mixing 1 part active ingredient with 99 parts distilled water/ alcohol. So the amount of active ingredient in 1 unit of 1C medicine is only 0.01 (or 10^-2) parts of the initial quantity.
A homeopathic medicine of 2C potency is made by taking 1 part of the above 1C medicine and mixing with 99 parts distilled water/ alcohol. So the amount of active ingredient in 1 unit of 2C medicine is only 0.0001 (or 10^-4) parts of the initial quantity.
If this is repeated 1000 times we get 1000C medicine which is 1M.
So 1 ml of Camphora 1M consists of just (10^-2000) ml of the active ingredient. Just imagine the no of zeroes. By this logic, 1kg of Camphor can be used to make 10^2000 litres of Camphora 1M !!! One might as well go for alcohol manufacturers if alcohol is the diluting agent used in Camphora 1M. 
This is the theory part as per my understanding. Please correct.
-
Not sure whether Camphora 1M is being used against Coronavirus as widely as indicated by the media. In fact I don’t even think there are too many people who believe in homeopathy. Having said that, Arsenicum Album 30, Gelsemium 30, Bryonia 30C etc are also recommended medicines against Coronavirus.
-
Not all of the homeopathic medicines sold in India are manufactured here. Lot of it is imported from Germany.
14 Likes
Thanks Aswin for your detailed response. Find it very useful in the present context. So it’s clear that Homeopathy medicines is not the reason the renewed investor interest in the Company
Another possible reason could be that the recent expansion / up-gradation carried out by the Co. has improved the camphor quality to pharma grade. This potentially could be a game changer as it means that the Co. caters to a totally different set of customers, the pharma Companies in the organised sector. This will be quite in contrast to its current clients from the unorganized sector who merely convert camphor from powder to tablet form. We need to find out the potential opportunity size of camphor used in the pharmaceutical industry. I understand that pharma grade camphor sells at a 25-30% premium over non pharma grade camphor.
Another possibility is the Co.'s efforts to increase its B to C operations. The Company is selling its camphor products in most if not all the organised retail chains, both under its own Mangalam / Campure brands as well as under the brands of the respective retail outlets. I am not sure if the Co.'s B to C operations have reached scale yet.
Hopefully, the Co.'s would shed more light on its operations in the coming Annual Report.
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MPCB order 8.05.2020.pdf (5.6 MB) Expansion seems to be completed and has recived consent to Operate as per MPCB order .
Managalam has added many Resins which should add to Healthier margins as mentioned in Annual Report.
| MPCB Date of Order | 18-05-2018 | 25-09-2019 | 08-05-2020 |
|---|---|---|---|
| Expiry Date | 28-02-2020 | 31-10-2020 | |
| Purpose of Order | Amendment in consent to operate | Consent to Establish | Consent to operate & Renewal of Consent |
| UAN No | 0000033838 | 0000068426 | 0000089093 |
| Capital Investment | 88.39 | 119.39 | 163.95 |
| Existing Investment | 88.39 | 88.39 | 88.39 |
| Expansion | 0 | 31 | 75.56 |
| MT/Month | |||
| Products | |||
| Alphapinene | 200 | 200 | |
| Polyster Resin | 100 | 100 | |
| Phenolic Resin | 150 | 800 | 950 |
| Alkyd Resin | 300 | 300 | |
| Coating | 500 | 500 | |
| Rosin Easter | 150 | 150 | |
| Maleic Modified Resin | 75 | 75 | |
| Phenolic Mofified Resin | 75 | 75 | |
| PVC Chemicals | 500 | 500 | |
| Camphene | 200 | 200 | |
| Dipentene | 350 | 350 | |
| Ketonic Resin | 100 | 100 | |
| Polyamide Resin | 100 | 100 | |
| Camphor | 550 | 550 | |
| Sodium Acetate | 500 | 500 | |
| Alkyl Phenol Formaldehyde Resin | 50 | 50 | |
| Carene,Lonifolene,DD,Turpentine/Dipentene,Camphor Oil, Pine Tar, Isobornyl Acetate, Camphene Beta Pipene,Terpine Chemicals | 300 | 300 | |
| Total | 1550 | 3450 | 5000 |
Operation of New Product lines can also be the reason for renewed investor interest in the company.
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This is extremely useful information @Pranshinv. This is big. Thanks for sharing it. The entire capacity is up by more than 200%. More importantly, the enhanced capacity caters to the value added derivatives. No wonder the promoters have been busy increasing their stake by the maximum permissible limits for the last two years. Perhaps this also explains the informed buying happening at the counter. Ideally the Co. should have shared it with the stock exchanges to enable all investors to be on the same page. Instead, the price fall all the way to 130 post Q3 results shook the confidence of retail investors who may have sold at every rise & are probably out.
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Indeed true @RajeevJ sold at rock bottom after Q3 results, mkt mayhem and economic scenarios being what they are. Didnt expect them to do any better being a B2B player predominantly.
Management silence aided, had some assurances and disclosure like above been there- probably situations may be different for some retail investors.
Invested elsewhere( not a micro cap) and recovered losses to a good extent though so no regrets.
Microcap investment is really a different ballgame and temperament altogether.
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Mr. Radhakrishan S. Damani is picked up more than 2% in Mangalam Organics as per list of shareholders obtained from the company. It will be interesting to see how events unfold going forward, but Mr. Damani’s presence will certainly improve the level of corporate governance in the Co.
The company’s products are already being sold at his D-Mart outlets.
List Mangalam.pdf (480.0 KB)
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Thats a good news if they improve corporate governance.
What is the status of their DRT deal? is it materialized?
Looking at your holding of more than 1%, Hope you are able to fetch the information from the company as and when required.
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DRT alliance has been terminated recently in March 2020:
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