The shares of Mangalam Industrial Finance Ltd., a non-banking financial company (NBFC) trading as a penny stock, locked in a 5% upper circuit at ₹0.97 during Tuesday's trading session. This sharp upward move occurred despite the absence of any fresh corporate announcements, pointing towards speculative trading activity in the counter.
Surge in Trading Activity and Recent Performance
The stock witnessed massive trading volumes, with approximately 420.78 lakh shares exchanging hands by 2:50 PM. This figure was substantially higher than the two-week average volume of 290.40 lakh shares. This marked the second consecutive day of gains for the scrip, which has now risen in four out of the last five trading sessions on the BSE.
However, market analysts urge caution, noting that such sharp movements in low-priced stocks are often volatile and driven by speculation. Investors are advised to exercise due diligence before dealing in such securities.
Long-Term Share Price Trend and Financial Snapshot
Despite the recent uptick, the near-term trend for Mangalam Industrial Finance has been under pressure. The stock has declined by 30.22% over the past month and nearly 26% in the last six months. On both a year-to-date (YTD) and one-year basis, the penny stock is down by a significant 68%.
The NBFC's shares are exclusively listed on the BSE. It recorded a 52-week high of ₹3.30 on December 30, 2024, and hit a 52-week low of ₹0.80 on December 17, 2025. The company's current market capitalisation is approximately ₹138 crore.
According to financial data from Screener, the company has a book value of about ₹0.21 per share and a high P/E ratio of roughly 108. Its Return on Equity (ROE) stands around 4.25%, with a Return on Capital Employed (ROCE) close to 6.97%. Notably, the company's balance sheet indicates it is nearly debt-free.
Details of the Recent Rights Issue
In a recent corporate action, Mangalam Industrial Finance undertook a rights issue to raise capital. The rights issue, which opened on October 27 and closed on November 14, aimed to raise over ₹48.08 crore. The board had approved the issuance of 48,08,21,750 equity shares at a price of Re 1 each during a meeting held on September 17, 2025.
This fundraising exercise increased the company's total outstanding equity shares from 96,16,43,500 to 1,44,24,65,250.
Founded in 1983 and based in Kolkata, Mangalam Industrial Finance is registered with the Reserve Bank of India (RBI). The company's primary business involves providing financing for land, equipment, and buildings. Its income is generated through interest and associated fees and commissions from its loan portfolio.
Disclaimer: This article is for informational purposes only. Readers are strongly advised to consult with a qualified investment advisor before making any financial decisions.
