Mankind Pharma Approves Sale Of Entire Stake In Wholly Owned Mahananda Spa And Resorts To Chalet Hotels

The board of Mankind Pharma Ltd. approved the sale of the company's entire stake in wholly owned subsidiary Mahananda Spa and Resorts Pvt. to Chalet Hotels Ltd.

The proceeds of monetisation of non-core assets are to be utilised to retire part of its debts, the company said in an exchange filing on Monday. The enterprise value of the deal is Rs 530 crore, and the transaction is expected to be completed by Feb. 28, as per the filing.

Mankind Pharma's consolidated net profit decreased 16% in the quarter ended December, missing analysts' estimates.

The company posted a net profit of Rs 380.2 crore in the third quarter as compared to Rs 453.8 crore in the year-ago period. Analysts tracked by Bloomberg had estimated a net profit of Rs 470 crore.

• Revenue up 24% to Rs 3,230 crore versus Rs 2,607 crore (Bloomberg estimate: Rs 3,180 crore).

• Ebitda up 37% to Rs 829.8 crore versus Rs 606.5 crore (Bloomberg estimate: Rs 837 crore).

• Margin expands to 25.7% versus 23.3% (Bloomberg estimate: 26.3%).

• Profit down 16% to Rs 380.2 crore versus Rs 453.8 crore (Bloomberg estimate: Rs 470 crore).

Mankind Pharma's stock fell as much as 2.28% during the day to Rs 2,461.10 apiece and closed 0.66% lower at Rs 2,518.60 apiece, compared to a 0.71% decline in the benchmark Nifty 50 on Monday. It has risen 11.61% in the last 12 months.

Twelve out of the 16 analysts tracking the company have a 'buy' rating on the stock, two recommend 'hold' and as many suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 11.2%.