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As long as you've got party members left, you can go back and level/equip them, buy whatever amount of items you need, and power through the rest of the game, if you have the patience to do so.
If you aren't having a hard time of the game, then going back and grinding like that is actually kind of counter-productive, since the rewards that you get going forward will tend to greatly outbalance what you can get by grinding like that, in terms of stuff over time.
There are a few other areas you can find random encounters to grind on, but none of them are as rewarding for mags as the cave enemies, and all of them also give worse exp, with the sole exception of Poisonous snakes, which give a bit more. That said, Poisonous Snakes are also much more of a pain to deal with and don't even reward a single mag, so I'd still go with the Unhuman Figures in the caves instead.
If you haven't explored every side area yet though, then I'd suggest doing that, since most unique encounters in this game are fairly rewarding for EXP, and side areas tend to be interesting and worth exploring anyway.