Mankind share price dips more than 1%- Analysts expect domestic growth to bounce back after some softness seen in Q2
- Q2 Results Review- Mankind Pharma tepid domestic revenue growth at 7% was attributed to weakness in the acute segment and soft growth in over the counter selling products. Higher Chronic products sales and rising exports while were positive , analysts expect growth to rebound moving forward
Share Price of Mankind Pharma Ltd dipped more than 1% in the intraday trades on Friday. While some softness in the domestic growth visible reflected in the September quarter performance declared a few days back has been a cause of concern. Analysts expect the growth to improve moving forward.
Mankind Pharma felt the impact of softness in acute segment sales during the September quarter that pulled down the domestic growth even as overall performance was lifted by continued traction in the Chronic portfolio, some price hikes and higher exports as per analysts.
Mankind Pharma’s revenue from Operations at ₹2,708 crore had grown 12% year-on-year. Its Domestic revenue at ₹2,529 crore grew 7% YoY. It was the faster pace of growth in export revenues that at ₹179 crore were up 159% YoY, that supported overall numbers.
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As delayed onset of the acute season was attributed as reason for Soft Q2 domestic growth by analysts, however, during the quarter, contribution from the chronic portfolio improved to 34% as against 32% YoY, with Cardiac and Anti-diabetic growing at double-digit growth rates, as per analysts at Antique Stock Broking.
The higher exports income supported Ebitda growth that at ₹686 crore, grew 15% YoY with margin of 25% . Net profit at ₹511 crore, were up by 21% YoY with margin of 19%
It is the pick up in the domestic sales that will be watched for eagerly as we move ahead in the second half. Most analysts expect the domestic growth momentum catching pace
Analysts at Kotak Institutional Equities said that Mankind’s 2QFY24 was marred by muted domestic growth, particularly in OTC (over the counter selling products). They build in recovery in prescriptions from hereon, with a relatively staggered improvement in OTC. Buoyed by ramp-up of its specialty divisions, increased chronic contribution and improved field force productivity, Kotak analysts expect Mankind to report 14% domestic sales CAGR (compound annual growth rate), over FY2023-26. In addition, they estimate a strong show in exports and operating leverage to drive robust 29% EPS CAGR for Mankind, over FY2023-26.
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Analysts at Antique Stock Broking also expect expect the Consumer Healthcare segment to grow at 10% CAGR, driven by premiumization of existing brands and new launches. With Indian Pharma market likely to grow at 10%, they expect Mankind to grow at 13% CAGR over a two-year period
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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