Mankind Pharma shares zoom 7% to new record high after Investec initiates coverage with ’buy’ rating, sees 36% upside

Shares of Mankind Pharma rose 7% after Investec initiated coverage with a 'buy' rating. The company, known for its 36 brands, is well-positioned in the growing Indian pharmaceutical market, driven by increased healthcare expenditure and an ageing population.

A Ksheerasagar
Published20 Sep 2024, 10:08 AM IST
Trade Now
Mankind Pharma shares zoom 7% to new record high after Investec initiates coverage with 'buy' rating, sees 38% upside.
Mankind Pharma shares zoom 7% to new record high after Investec initiates coverage with ’buy’ rating, sees 38% upside. (REUTERS)

Shares of Mankind Pharma, India’s fourth-largest pharmaceutical company, surged 7 per cent in today's early morning trade, hitting a new all-time high 2,597 per share. The rise comes after global brokerage firm Investec's initiated coverage on the stock with a 'buy' rating and a target price of 3,300, indicating a potential upside of 36 per cent from the previous closing price.

Investec cited Mankind's strong execution capabilities and brand equity, which are well-aligned with the super-specialty strengths of Bharat Serums and Vaccines (BSV), a brand Mankind Pharma recently acquired. The brokerage emphasized that BSV's expertise in research and development, combined with its sourcing capabilities, forms a significant competitive advantage that aligns with Mankind's strategic vision.

Also Read | Mankind Pharma, Lupin and 5 other pharma stocks surge up to 23% in August

Furthermore, Investec highlighted Mankind's robust presence in India and its vast distribution network as key factors that will drive a significant increase in BSV's India sales. This is due to the complementary synergies between the two companies. The underpenetrated in-vFitro fertilization (IVF) market also presents substantial growth potential, positioning the Mankind-BSV partnership as a future global leader in the space.

Investec believes that the market is underestimating the long-term growth potential and strategic value of BSV's specialty business, which is expected to be a major growth driver for Mankind Pharma.

Investec's target price is currently the highest among analysts. Previously, domestic brokerage firm Motilal Oswal had raised its target price to 2,760 per share, citing Mankind's efforts to diversify its product range, gain market share in chronic therapy prescription drugs, and scale brands to revenues exceeding 1 billion.

Also Read | Piramal Pharma jumps 23% in Sept so far and 68% YTD; here’s what analysts say

The broekrage also noted Mankind's superior execution in past acquisitions, which provides strong visibility into long-term free cash flow generation.

Trades over 138% above the issue price

The company's shares made their debut on the Indian stock exchanges on May 9, 2023, priced at 1,422, which represented a 31.7 per cent premium over the issue price of 1,080 per share. Since its listing, the stock has maintained a strong upward trajectory, achieving a significant milestone in November by breaching the 2,000 mark. In today's trading session the stock edged close to 2,600 apiece.

As of the current market price of 2,573, the stock has appreciated by 138 per cent compared to its initial issue price.

Also Read | India’s FDI inflows jump 47.8% to $16.17 billion in April-June FY25

Mankind Pharma specializes in the development and manufacturing of pharmaceutical formulations across a range of acute and chronic therapeutic areas, and it boasts a portfolio of several well-known consumer healthcare brands. The company has approximately 36 brands, including Manforce, Prega News, Unwanted 72, Moxikind, and Nurokind, with multiple products ranking among the Top 10 in their respective markets.

India’s pharmaceutical industry is poised to achieve a robust revenue growth rate of 10 per cent. This expansion will be primarily driven by increased spending on healthcare, ageing population, population expansion, a surge in lifestyle diseases, and higher awareness about quality healthcare.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

 

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:20 Sep 2024, 10:08 AM IST
Business NewsMarketsStock MarketsMankind Pharma shares zoom 7% to new record high after Investec initiates coverage with ’buy’ rating, sees 36% upside

Most Active Stocks

Bharat Electronics share price

283.95
03:58 PM | 1 OCT 2024
-1.1 (-0.39%)

Tata Steel share price

167.00
03:56 PM | 1 OCT 2024
-1.45 (-0.86%)

Tata Power share price

481.00
03:58 PM | 1 OCT 2024
-1.7 (-0.35%)

Zee Entertainment Enterprises share price

140.05
03:55 PM | 1 OCT 2024
2.4 (1.74%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Caplin Point Laboratories share price

2,080.30
03:52 PM | 1 OCT 2024
182.75 (9.63%)

PB Fintech share price

1,729.65
03:57 PM | 1 OCT 2024
113.65 (7.03%)

Welspun Living share price

175.00
03:50 PM | 1 OCT 2024
11.25 (6.87%)

National Aluminium Company share price

224.15
03:56 PM | 1 OCT 2024
13.75 (6.54%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    76,915.000.00
    Chennai
    76,921.000.00
    Delhi
    77,073.000.00
    Kolkata
    76,925.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts