Mankind Pharma - Growth Can Accelerate With Minimal Downside Risks: Systematix Initiates Coverage

Systematix Research Report

We initiate coverage on Mankind Pharma Ltd. with a 'Hold' rating and a target price of Rs 1,425, based on 27 times FY25E earnings per share. We estimate 14%, 24% and 28% compound annual growth rate in Mankind Pharma’s sales, Ebitda and net earnings, respectively, over FY23–25E.

Mankind Pharma is the youngest India-focused company (~97% of revenue) to figure among the top five Indian Pharma market names, which reflects its strong execution skills in the domestic market. The company has positioned itself as an affordable brand alternative in most therapeutic areas in which it has built presence.

Nearly 47% of its domestic sales comes from tier II-IV cities, compared with 37% for the IPM. The tier II-IV markets are expanding faster than Metro and tier-I cities.

Nearly 80% of doctors in India prescribe the Mankind Pharma brand. In addition to a strong branded prescription base, the company has one of the strongest over-the-counter portfolio (8% of its domestic revenue) among peers. Dominant OTC brands in the Mankind Pharma portfolio include Prega News, Manforce and Gas-O-Fast.

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