MANKIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.9

Mankind Pharma shows strong revenue growth and brand strength, but its high valuation and declining profit margins temper long-term attractiveness. Best suited for selective accumulation on dips.

📊 Financial Overview

• Revenue: ₹12,956 Cr (TTM) — up 24.8% YoY

  MarketsMojo.com

• Profitability: PAT at ₹413 Cr, down 13.4% QoQ due to rising costs

  MarketsMojo.com

• Margins: ROCE at 15.0%, ROE at 13.9% — decent but below top-tier pharma peers
• Debt Profile: Debt-to-equity ratio of 0.50 — moderate leverage
• EPS: ₹45.1 — supports premium valuation

📈 Valuation Metrics

• P/E Ratio: 54.3 — significantly above industry average of 33.1

  Value Research

• P/B Ratio: ~6.7 — reflects premium pricing relative to book value ₹355

  Value Research

• PEG Ratio: 6.45 — indicates overvaluation relative to growth
• Intrinsic Value: Estimated around ₹2,200–₹2,300 based on sector multiples and earnings

🏢 Business Model & Competitive Edge

• Core Operations: Focused on branded generics, OTC, and specialty chronic therapies
• Moat: Strong domestic brand recall and high-entry barrier super specialty portfolio

  Mankind Pharma

• Growth Drivers: Expansion in chronic and super specialty segments, OTC portfolio, and rural penetration

📌 Entry Zone Recommendation

• Suggested Entry: ₹2,250–₹2,300 — near 52-week support and below DMA50
• Technical Indicators: RSI at 45.6 (neutral), MACD negative — short-term weakness

📈 Long-Term Holding Guidance

• Strong brand and growth potential make Mankind Pharma a viable long-term hold
• Wait for valuation to cool before accumulating aggressively

✅ Positive

• Strong revenue growth and brand equity
• Expanding specialty and OTC segments
• Moderate debt and healthy EPS

⚠️ Limitation

• High P/E and PEG ratios
• Declining quarterly profit margins
• FII holding declined by 0.24%

📰 Company Negative News

• Rising interest expenses and cost pressures impacted Q4 profitability

  MarketsMojo.com

🌟 Company Positive News

• Net sales up 24.8% YoY in Q4 FY25

  MarketsMojo.com

• Investor presentation highlights long-term growth pillars: chronic, OTC, and super specialty

  Mankind Pharma

🏭 Industry

• Pharma industry P/E at 33.1 — Mankind trades at a premium
• Sector driven by innovation, regulatory approvals, and branded generics

🧾 Conclusion

• Mankind Pharma is a growth-oriented pharma player with strong fundamentals but stretched valuation
• Accumulate selectively on dips; monitor margin trends and cost pressures

Sources

Mankind Pharma

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