MANKIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.2

• 📈 Revenue Growth: Quarterly PAT improved from ₹413 Cr to ₹459 Cr, but YoY profit variation is -25.2%
• 💰 Profit Margins: Moderate, ROE at 13.9% and ROCE at 15.0%
• ⚖️ Debt Ratio: Debt-to-equity at 0.47, manageable but not debt-free
• 💵 Cash Flows: EPS of ₹40.4, steady but not high relative to valuation
• 📊 ROE/ROCE: Reasonable efficiency, but below top-tier pharma benchmarks
• 📉 Valuation: P/E 53.8 vs Industry PE 30.6, significantly overvalued
• 📚 Book Value: ₹376, P/B ~5.78
• 📈 PEG Ratio: 6.40, indicates valuation stretched relative to growth
• 🏥 Business Model: Leading pharma company with strong presence in domestic formulations, consumer healthcare, and generics
• 🛡️ Competitive Advantage: Strong brand portfolio, leadership in domestic pharma, expanding global footprint

Positive

• ✅ Strong domestic market presence in pharma and consumer healthcare
• ✅ Consistent quarterly profit improvement (₹459 Cr vs ₹413 Cr)
• ✅ Institutional investor confidence with DII holdings increased (+0.41%)
• ✅ Diversified product portfolio across therapeutic areas

Limitation

• ⚠️ High P/E ratio (53.8) compared to industry average (30.6)
• ⚠️ PEG ratio at 6.40 indicates poor growth relative to valuation
• ⚠️ Dividend yield at 0.05%, negligible shareholder returns
• ⚠️ FII holdings reduced (-0.24%)

Company Negative News

• 📉 Profit variation YoY at -25.2%, showing earnings pressure
• 📉 RSI at 35.3 indicates weak momentum

Company Positive News

• 🌍 Expansion in global generics and consumer healthcare markets
• 💡 Strong quarterly profit recovery despite industry headwinds
• 🏭 Continued investment in R&D and product pipeline

Industry

• 💹 Industry PE at 30.6, Mankind trades at a premium
• 📈 Pharma sector supported by rising demand for generics and healthcare products

Conclusion

Mankind Pharma shows moderate fundamentals with strong domestic presence and consistent quarterly profit growth. However, valuations are stretched with high P/E and PEG ratios, and dividend yield is negligible. Entry zone is attractive only near ₹2,100–2,200 (close to 52-week low and RSI oversold zone). Long-term holding is favorable only if earnings growth accelerates and valuations normalize.

Would you like me to extend this into a peer benchmarking overlay comparing Mankind Pharma with Sun Pharma, Cipla, and Dr. Reddy’s, or should we run a sector rotation scan to identify compounding opportunities across pharma and healthcare plays?