MANKIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Here’s an in-depth look at Mankind Pharma and how it measures up on financial, strategic, and valuation metrics

📊 Core Financials

Return Metrics: ROE (14.7%) and ROCE (16.0%) are solid, reflecting efficient use of capital.

Earnings Profile

EPS at ₹48.3 supports earnings power, but doesn’t fully justify the high valuation.

PAT increased from ₹374 Cr. to ₹425 Cr., though the Qtr Profit Var is -9.86%, hinting at margin pressure or seasonal dip.

Debt Position: Debt-to-equity at 0.59 shows prudent leverage and flexibility for future growth.

📈 Valuation Analysis

Metric Value Comment

P/E 60.6 Excessively high—markets pricing in aggressive growth

Industry PE 34.0 Mankind is trading at a hefty premium to peers

P/B Ratio ~7.36 Very rich—suggests investor optimism, but requires consistent performance

PEG Ratio 7.33 Exceptionally high—valuation doesn’t align with actual growth rate

Dividend Yield 0.00% No dividend, reinvestment-driven model

Verdict: Currently overvalued on most fronts unless earnings growth accelerates meaningfully.

🏥 Business Model & Strategic Position

Strong domestic brand in OTC and prescription drugs; also expanding into chronic therapies and global markets.

Lean balance sheet and asset-light strategy aid scalability.

Competitive advantage lies in distribution depth, consumer trust, and brand-building in non-traditional pharma segments.

📉 Technical Picture

RSI: 53.0 — Neutral, no overbought/oversold extremes.

MACD: 47.6 — Strong momentum signal, trending upward.

DMA Levels: Price is above both 50-DMA (₹2,490) and 200-DMA (₹2,446), indicating positive trend strength.

🛒 Entry Zone & Investment Outlook

Entry Zone: ₹2,450–₹2,500 range — closer to trend support and less speculative.

Long-Term View: Mankind suits aggressive growth portfolios, but current valuation demands caution. Long-term potential is strong if earnings compound steadily and margins hold. A staggered entry with regular monitoring could mitigate risks.

I can also benchmark its valuations and profitability against peers like Cipla, Alkem Labs, or Torrent Pharma. Want me to pull that up?

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