Mankind Pharma share price will be in focus after the pharmaceutical company reported strong September quarter results, prompting brokerages to retain their bullish views on the stock, citing improving domestic growth, robust exports and operating leverage.
Mankind Pharma reported a 37.7% year-on-year (YoY) increase in consolidated net profit to Rs 716 crore in Q2FY27, while revenue from operations rose to Rs 4,337.9 crore from Rs 3,697.2 crore in the corresponding quarter last year.
Jefferies maintained its ‘Buy' rating on Mankind Pharma but lowered its target price to Rs 2,900 from Rs 3,220, citing a stronger growth outlook and easing integration challenges.
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The brokerage said the September quarter results beat its revenue, EBITDA and profit estimates by 5%, 8% and 27%, respectively. Revenue grew 17% YoY, while EBITDA increased 27% to Rs 1,170 crore.
Domestic formulations grew 16%, finally outpacing industry growth, while exports surged 33%. Improved gross margins and operating leverage profitability. However, muted consumer healthcare growth remained a concern.
Jefferies raised its EBITDA estimates for FY27-29 by 3%, reflecting stronger revenue growth, although it lowered its valuation multiple to 22 times December 2028 estimated EBITDA from 26 times earlier.
Kotak Institutional Equities retained its ‘Buy' rating and raised its fair value estimate to Rs 3,035 from Rs 3,000, citing an acceleration in organic domestic growth.
The brokerage estimated organic domestic growth at over 14% in Q2FY27, compared with around 10% in the June quarter. It expects Mankind Pharma to outperform the Indian pharmaceutical market by 1.1-1.2 times over the next two quarters.
Kotak expects its acquired Bharat Serums and Vaccines business to sustain strong momentum, projecting a 20% sales compound annual growth rate over FY26-29.
However, the consumer healthcare business remains a key monitorable, alongside capital allocation plans and investments in biotechnology.
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