Mankind Pharma Gets Target Price Hike — Why Jefferies Calls It Top Pick

Jefferies has raised its target price on Mankind Pharma Ltd., maintaining a 'buy' rating. The target has been hiked to Rs 3,000 from Rs 2,870, as the pharma firm is set for a recovery following a challenging nine-month period of reorganisation and integration of the BSV acquisition, the brokerage said.

"We believe Mankind is poised for a recovery from hereon," Jefferies stated, adding that the company is expected to see significant improvements in the coming quarters.

Jefferies anticipates that the first and second quarters will be pivotal for Mankind Pharma, with India Rx growth normalising in the second half of the fiscal. The synergies from the BSV acquisition are expected to start reflecting in the 26% Ebitda margin guidance for FY26. "Starting FY27, Mankind should achieve 1.5x IPM growth and further improvement in margins," the report noted.

The brokerage highlighted the favourable risk-reward profile of Mankind Pharma, making it their top pick. "In a scenario where recovery in the base business is delayed and BSV synergies are elusive, we estimate the downside is less than 10%," Jefferies explained.

However, with signs of gradual recovery and strong performance in the second half of FY26, Mankind is expected to deliver 19% returns in the base case and over 30% in the bull case.

Mankind Pharma, established in 1995, is one of India's leading pharmaceutical companies. The company focuses on a wide range of therapeutic areas, including antibiotics, gastrointestinal, cardiovascular, dermal, and erectile dysfunction medications. Mankind Pharma has a strong presence in both the domestic and international markets.