MANKIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials Overview

Profitability

PAT dipped slightly from ₹382 Cr to ₹413 Cr — a 13.4% decline, but still reflects solid earnings.

EPS: ₹45.1 — strong for its price band.

Return Metrics

ROCE: 15.0% — healthy capital efficiency.

ROE: 13.9% — solid shareholder return.

Debt Profile

Debt-to-equity: 0.50 — moderate leverage, manageable given consistent profitability.

Cash Flow: Operational cash flow of ₹546 Cr in Q1FY25 indicates strong internal funding capacity

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💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 60.1 Richly valued vs. industry average of 33.4 — reflects premium positioning.

P/B Ratio ~7.42 High, but justified by brand strength and growth trajectory.

PEG Ratio 7.15 Elevated — suggests valuation may be stretched relative to growth.

Intrinsic Value Slightly below current price Due to high multiples and recent profit contraction.

🧠 Business Model & Competitive Advantage

Mankind Pharma is a domestic powerhouse in India’s pharmaceutical sector

Core Segments

Prescription Drugs: Acute and chronic therapies — anti-infectives, cardiac, anti-diabetic, neuro/CNS, and respiratory.

Consumer Healthcare: Dominant OTC brands like Prega News (83% market share), Manforce (28% in condoms), and Gas-O-Fast

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Manufacturing & R&D

30 facilities with 75% in-house production.

6 R&D centers and 23 brand families — strong innovation pipeline

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Strategic Moves

Acquired Bharat Serums & Vaccines for ₹13,630 Cr — expanding into women’s health and critical care

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Domestic Focus

97% of revenue from India — deep market penetration and brand loyalty

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Ranked #1 by prescription volume for 7 consecutive years

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Its competitive edge lies in affordability, distribution reach, and brand dominance in both pharma and consumer segments.

📈 Technical & Sentiment Signals

RSI: 62.5 — nearing overbought zone, short-term caution.

MACD: Positive — bullish momentum.

Volume: More than double weekly average — strong investor interest.

DMA 50/200: Price above both — confirms long-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹2,500–₹2,580 — near DMA levels and below recent highs.

Long-Term View: Mankind is a high-quality, brand-driven pharma play with strong domestic dominance and expanding specialty portfolio. Suitable for long-term holding, especially for investors seeking exposure to India’s healthcare consumption boom. Dividend yield is low (0.04%), but growth potential compensates.

You can explore more on FundsIndia’s equity desk analysis

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or TradeBrains’ expansion breakdown

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. Let me know if you'd like a peer comparison with Cipla or Sun Pharma.

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www.fundsindia.com

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tradebrains.in

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empor.top

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