MANKIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | MANKIND | Market Cap | 86,401 Cr. | Current Price | 2,094 ₹ | High / Low | 2,727 ₹ |
| Stock P/E | 51.9 | Book Value | 376 ₹ | Dividend Yield | 0.05 % | ROCE | 15.0 % |
| ROE | 13.9 % | Face Value | 1.00 ₹ | DMA 50 | 2,199 ₹ | DMA 200 | 2,344 ₹ |
| Chg in FII Hold | -1.49 % | Chg in DII Hold | 1.35 % | PAT Qtr | 459 Cr. | PAT Prev Qtr | 413 Cr. |
| RSI | 41.5 | MACD | -28.5 | Volume | 3,63,359 | Avg Vol 1Wk | 3,94,579 |
| Low price | 2,059 ₹ | High price | 2,727 ₹ | PEG Ratio | 6.17 | Debt to equity | 0.47 |
| 52w Index | 5.17 % | Qtr Profit Var | -25.2 % | EPS | 40.4 ₹ | Industry PE | 29.0 |
📊 Financials: Mankind Pharma has a market cap of 86,401 Cr. with quarterly PAT at 459 Cr., up from 413 Cr., though profit variation is negative (-25.2%). ROE at 13.9% and ROCE at 15.0% reflect moderate efficiency. Debt-to-equity ratio of 0.47 indicates manageable leverage. EPS stands at 40.4 ₹, supported by consistent earnings, though margins remain under pressure.
💹 Valuation: Current P/E of 51.9 is significantly higher than the industry average of 29.0, suggesting overvaluation. P/B ratio is ~5.57 (2,094 ₹ / 376 ₹), which is expensive relative to book value. PEG ratio of 6.17 highlights overpriced growth. Intrinsic value appears lower than current market price, making the stock richly valued despite strong fundamentals.
🏭 Business Model & Competitive Advantage: Mankind Pharma operates in pharmaceuticals, focusing on generics, formulations, and specialty drugs. Its competitive advantage lies in strong domestic presence, brand recognition, and diversified product portfolio. However, profitability is sensitive to regulatory approvals, pricing pressures, and competition in generics.
📈 Entry Zone: With RSI at 41.5 (neutral) and support near 2,050–2,100 ₹ (close to 52-week low of 2,059 ₹), accumulation is advisable only at lower levels. Current price at 2,094 ₹ remains expensive relative to valuation metrics.
🕰️ Long-Term Holding Guidance: Mankind Pharma is fundamentally stable but currently overvalued. Long-term holding is viable only if accumulated at lower levels, with patience for earnings growth to catch up with valuation.
Positive
- Strong domestic presence and brand recognition.
- Moderate ROE (13.9%) and ROCE (15.0%).
- Quarterly PAT improved to 459 Cr. from 413 Cr.
- DII holdings increased by 1.35%, showing domestic investor confidence.
Limitation
- High P/E (51.9) compared to industry average (29.0).
- P/B ratio (~5.57) is expensive relative to book value.
- PEG ratio of 6.17 indicates overpriced growth.
- FII holdings decreased by 1.49%, showing reduced foreign confidence.
Company Negative News
- Profit variation negative (-25.2%) despite revenue growth.
- Stock trading below DMA 50 and DMA 200, indicating weak momentum.
Company Positive News
- Quarterly PAT improved sequentially (459 Cr. vs 413 Cr.).
- Strong domestic institutional investor support.
Industry
- Pharmaceutical sector benefits from strong demand for generics and specialty drugs.
- Industry P/E at 29.0 highlights Mankind Pharma’s overvaluation.
Conclusion
⚖️ Mankind Pharma is a fundamentally stable company with strong brand presence but currently overvalued. Entry is advisable only near 2,050–2,100 ₹, and long-term holding is recommended only if accumulated at lower levels with patience for earnings growth to align with valuation.