MANKIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | MANKIND | Market Cap | 86,849 Cr. | Current Price | 2,103 ₹ | High / Low | 2,727 ₹ |
| Stock P/E | 49.2 | Book Value | 376 ₹ | Dividend Yield | 0.05 % | ROCE | 15.0 % |
| ROE | 13.9 % | Face Value | 1.00 ₹ | DMA 50 | 2,155 ₹ | DMA 200 | 2,285 ₹ |
| Chg in FII Hold | -1.49 % | Chg in DII Hold | 1.35 % | PAT Qtr | 513 Cr. | PAT Prev Qtr | 459 Cr. |
| RSI | 45.4 | MACD | 0.42 | Volume | 3,23,555 | Avg Vol 1Wk | 4,66,297 |
| Low price | 2,012 ₹ | High price | 2,727 ₹ | PEG Ratio | 5.84 | Debt to equity | 0.47 |
| 52w Index | 12.7 % | Qtr Profit Var | 24.5 % | EPS | 41.3 ₹ | Industry PE | 27.6 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from 459 Cr. to 513 Cr. QoQ, showing steady growth. EPS at 41.3 ₹ is modest relative to valuation.
- Margins & Returns: ROE at 13.9% and ROCE at 15.0% are moderate, reflecting average capital efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.47 indicates manageable leverage.
- Cash Flow: Profit growth supports reinvestment, though margins remain modest compared to valuation.
💹 Valuation Metrics
- P/E Ratio: 49.2 vs Industry PE of 27.6 → Overvalued.
- P/B Ratio: ~5.6 (Price 2,103 ₹ / Book Value 376 ₹) → Expensive relative to assets.
- PEG Ratio: 5.84 → Indicates growth is priced at a steep premium.
- Intrinsic Value: Current price appears above fair value zone.
🏢 Business Model & Competitive Advantage
Mankind Pharma is a leading pharmaceutical company with a strong presence in generics, formulations, and specialty drugs. Its wide distribution, brand recognition, and diversified portfolio provide resilience. However, valuations are stretched relative to fundamentals.
📈 Entry Zone & Long-Term Guidance
Technically, RSI at 45.4 and flat MACD suggest neutral momentum. A better entry zone would be closer to 2,000–2,050 ₹ (near support levels). Long-term holding is advisable only if earnings growth sustains and valuations normalize.
✅ Positive
- Quarterly PAT growth (513 Cr. vs 459 Cr.).
- Strong brand presence in pharmaceuticals.
- DII holdings increased (+1.35%), showing domestic confidence.
⚠️ Limitation
- High P/E (49.2) and P/B (~5.6) ratios.
- PEG ratio (5.84) indicates expensive growth pricing.
- ROE and ROCE are moderate compared to valuation multiples.
📉 Company Negative News
- FII holdings decreased (-1.49%), showing reduced foreign confidence.
- Valuation significantly above industry average.
📈 Company Positive News
- Quarterly PAT improved QoQ.
- DII accumulation signals domestic support.
🏭 Industry
The pharmaceutical industry benefits from global demand for generics, specialty drugs, and healthcare innovation. Industry PE at 27.6 highlights Mankind Pharma’s premium valuation relative to peers.
🔎 Conclusion
Mankind Pharma is fundamentally strong with steady profit growth and a strong brand, but valuations are stretched. While domestic investor confidence is a positive, foreign sentiment has weakened. Accumulation is advisable only near 2,000–2,050 ₹ for long-term holding, contingent on sustained earnings growth and normalization of valuation multiples.